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.
Answered on 12/28/06, 3:28 pm