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Wills, Trusts & Estates Keyed to Sterk
Scheffel v. Krueger
Citation:
782 A.2d 410 (2001)Facts
In 1998, the plaintiff filed a lawsuit against Kyle Krueger, alleging he sexually assaulted her minor child, recorded the act, and broadcasted it online. These same allegations were the basis for criminal charges against him. The court entered a default judgment against Krueger for $551,286.25 in damages. To satisfy the judgment, the plaintiff sought to attach Krueger’s beneficial interest in an irrevocable trust created for his benefit by his grandmother in 1985. The trust’s terms specified that the trustee must pay Krueger all of the trust’s net income quarterly and has the discretion to distribute principal for his maintenance, support, and education. However, Krueger cannot access the principal until he turns 50, which will not occur until 2016. The trust also includes a provision prohibiting Krueger from transferring or assigning his interest in the trust and ensures that his creditors cannot reach or interfere with the trust’s payments before Krueger receives them. This provision prevents the plaintiff from attaching the trust to satisfy the judgment.
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11m 20s