Frederick Wetzel, the trustee of Cheryl Reagan’s bankruptcy estate, and Latta Bachelor, the personal representative of Ronald Reagan’s probate estate, appeal from an order of the District Court affirming the judgment of the Bankruptcy Court in this interpleader and declaratory-judgment action filed by Regions Bank.
Bachelor and Wetzel appealed to the District Court, which affirmed the judgment of the Bankruptcy Court. Wetzel v. Regions Bank (In re Reagan), 433 B.R.263 (W.D. Ark. 2010). On appeal to the Appeals Court, Appellants argue that Cheryl’s behavior as executrix of Ronald’s estate should render the otherwise valid spendthrift provision in Ronald’s will unenforceable under Arkansas law and thus unenforceable under bankruptcy law, thereby permitting Wetzel to seize for the bankruptcy estate the distributions of net income from Trust C that would otherwise be payable to Cheryl. Appellants also argue that the Bankruptcy Court improperly concluded that distributions of net income from Trust C, once paid to Cheryl, are exempt from execution under Arkansas law.
Affirmed.
