Legal Question in Real Estate Law in California

I have $85K in assets (stocks) and need to short sell my condo (its upside down approx $100K). I am named a beneficiary on my family's trust. Can I transfer my assets into my family trust w/out penalty or would it be helpful to set up my own individual trust? How can I protect myself so that the mortgage company can't take my assets?


Asked on 6/07/10, 3:12 pm

1 Answer from Attorneys

You probably can't transfer your stocks into your family trust, though I would have to check the trust documents to be sure. Bear in mind, however, that even if you can do that, the stocks would then be held for the benefit of all the beneficiaries of the trust, not just for you anymore, and could not be returned to your or sold for your benefit alone. As for other alternatives, you can create your own trust. In order for it to be unavailable to your creditors, however, it must be an irrevokable trust, among other things. That again means you are giving up the stocks for good. If the trust can give you back the stocks or sell the stocks and give you the money, then the bank can get an order that it do that to pay your debts.

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Answered on 6/07/10, 6:26 pm


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