§ 42 — Trusts for the benefit of creditors; termination of trust

Massachusetts § 42

• Jurisdiction: Massachusetts
• Part II: REAL AND PERSONAL PROPERTY AND DOMESTIC RELATIONS
• Title II: DESCENT AND DISTRIBUTION, WILLS, ESTATES OF DECEASED PERSONS AND ABSENTEES, GUARDIANSHIP, CONSERVATORSHIP AND TRUSTS
• Ch. 203: TRUSTS

Text

Section 42. If, upon petition or otherwise, the probate court for the county where letters testamentary or of administration have been granted on the estate of a deceased person finds that such person in his lifetime made a conveyance of real estate in the commonwealth in trust for the benefit of his creditors, and the trustee certifies that all the debts secured by such conveyance and due to persons other than himself have been paid or otherwise adjusted to the satisfaction of the creditors so far as known and that he desires to settle his trust account and to terminate the trust, the court shall appoint a time and place for hearing all persons interested in such trust, of which notice shall be given by publication in a newspaper published in the county, or otherwise, as the court orders. Upon such hearing the court may terminate the trust so far as the creditors and persons claiming under them are concerned, may discharge such real estate from the trust, may settle the trust account, and make any further order as to the disposition, distribution or partition of the remaining trust estate, consistent with the provisions of the original instrument creating the trust. This section shall not apply to any case where the instrument creating the trust does not bear date more than six years previous to the time appointed for the hearing; nor shall it affect the operation of the insolvent laws of the commonwealth.