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In re Leroy Milton Horsley and Darlene Joy Horsley

Bankr. No.: 
85-30071
Chapter: 
7
Date of Decision: 
January 4, 1988
Issue: 
Whether a contingent remainder in a trust containing a spendthrift provision is property of the chapter 7 debtor’s bankruptcy estate under 11 U.S.C. § 541(a)(1) or 11 U.S.C. § 541(a)(5)(A)?
Ruling: 
The debtor’s contingent remainder interest in the trust is property of the bankruptcy estate.
Full Bankruptcy Court Decision: 
Appeal Summary: 
In Horsley v. Maher, 89 B.R. 51 (D.S.D. 1988), the district court reversed the bankruptcy court’s decision, ruling the debtor’s contingent remainder interest in the trust was not property of the estate because the spendthrift provision of the trust was enforceable to prevent the transfer of the debtor’s contingent remainder interest in trust assets on or within 180 days after the bankruptcy filing.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: