Posted in: Bi-Weekly Receivership Education, Lien Stripping

LIEN STRIPPING WHY DOES IT OCCUR AND HOW DOES IT WORK?

Few people are familiar with the term lien stripping. Therefore, an example to illustrate when lien stripping would be used seems the most appropriate way to introduce the process. As an example, if in 2010 a set of parents drafted a granting $1,000,000 to their four children upon their deaths each child would be entitled to $250,000. However, what if when the parents died in 2020 there was only $500,000 left in the Estate? Obviously,