Legal Question in Real Estate Law in California

Re: California Homestead Protection

A revocable trust is no insulation at all. An irrevocable trust presents more of an obstacle to creditors, but placing property into an irrevocable trust without the transferor receiving fair value is likely to be challenged as a fraudulent transfer, giving all parties (trustor, trustee and beneficaries) additional legal problems. The best way to protect real property and other assets from creditor claims is by avoiding judgments in the first place and paying your bills. Creditors are entitled to be paid and debtors are entitled to shelter a limited amount of property from such claims. The laws defining and enforcing these policies are very strong and the courts and legislature have actively pursued creating tools to carry out these policies and to plug loopholes as they become known.