Does a creditor have a right to put a lien on an account which is In Trust For the debtor?
State law will determine whether such a lien is possible. However, in most cases the designated beneficiary on such an account has no legal right to the account that can be reached by a creditor. That's because in most states the designation of an account beneficiary is completely revocable, and all rights to the account remain with the account owner (sometimes referred to as the trustee) until his or her death.
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