Legal Question in Real Estate Law in California

home in trust

My home is listed in a trust at the title company. Will that protect it from a mechanics lien or liens and judgements.


Asked on 12/28/06, 1:32 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: home in trust

No.

A revocable trust has almost no effect on the reachability of assets held in the trust.

An irrevocable trust cannot be required to make its assets available to pay the creditors of a beneficiary contrary to the terms of the trust. This does not, however, mean that trust assets cannot be liened or levied upon to pay the trust's debts.

Further, placing assets into an irrevocable trust to protect them from creditors (both existing and potential) is a fraud, and a creditor can have the transfer un-done and hold both the beneficiary and the trustee liable for damages.

Read more
Answered on 12/28/06, 3:28 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in California