Hawkins clause.

[Orkibi]

Hi , Anyone hs information regarding Hawkins Clause?

There is only one thread that mention it , Poomba out line the principle . I would like to know if one can apply it in GSA between Trusts ?? as trust don't die they have vesting day.

The tread :https://www.propertytalk.com/forum/s...Hawkins+clause

Thanks for any comment regarding the issue.

Hadar

[Rosco]

GRA use these a lot and I would suggest you talk to them .

The Hawkins clause comes from a court case involving someone Hawkins. Hawkins had loaned some money to his family Trust and put a clause in the deed of acknowledgement of debt that only he could demand this debt was repaid. Hawkins went bankrupt and the official assignee tried to demand that Hawkins family Trust repay this debt. But the courts found that the official assignee was not Hawkins, therefore it couldnt' make the Trust repay the debt. I have a funny feeling this case ending up settling out of court, so it is not 100% reliable put is an extra form of protection that may work or at least delay creditors in a worst casse scenario.

In your loan document or deed of acknowledgement of debt I would put, "The loan is repayable 7 years after it is demanded by Joe King (the lendors full name)

Ross

[Perry]

That original thread quoted gives the impression of
finishing without a reasonable conclusion. Maybe worth
another peep. After re-reading it, there did appear to be
some confusion between Trust (or Trustee) capital and
Trustee (or Trust) income.

[Orkibi]

Dosn't make any sense to me .... it looks like this clause is in the gray area..??

Hadar