Trust property generally excluded from bankrupt’s estate

Property held in trust is prima facie exempt from the bankrupt’s estate:
 
The property of a bankrupt divisible among his creditors shall not comprise property held by the bankrupt in trust for any other person;
(Bankruptcy and Insolvency Act, s. 67(1)(a)).
 
Therefore, to the extent the trust provisions under the Builders Lien Act establish a valid trust then such trust property will not form part of the bankrupt’s estate. See below discussion whether trusts under the Builders Lien Act are constitutional. 
 

 

 

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