Legal Question in Real Estate Law in California

Protect Real Estate Family Limited Partnership or Trust

I would like to create a Family Limited Partnership (FLP) or Trust to protect my real estate from judgments or other problems in the future. I started looking into this over a year and � ago, & met with an attorney to set up the Trust for me, but it didn't get done. Could you please tell me, might there be some benefit in dating my paperwork on the date I first requested this? Or having my former attorney date the paperwork, & send it to my new attorney who would know how to set up the Trust? In the meantime, a frivolous action was filed against me, no judgment has been filed, & although I believe it will be dismissed, I do want to protect myself and wouldn't want the judge to presume that since I am now just completing the Family Limited Partnership, I did it because of this baseless action that has been filed. I wanted it back then prior to any knowledge of this action. Also, I have read websites about asset protection & setting up a Trust or a corporation, & want to be sure I select a legitimate way to protect myself now & be able to safeguard my only asset, my home. What's the best way to do the FLP or a Trust, so that a judge will honor it, given a lawsuit is pending? I'd be thankful for any detailed info you can provide.


Asked on 11/14/04, 12:37 am

2 Answers from Attorneys
Michael Olden Law Offices of Michael A. Olden

Re: Protect Real Estate Family Limited Partnership or Trust

First let me say that I have been practicing law for over 30 years and I am an officer of the court. I am one of those lawyers who has ethics and principles. Your question amaze me. How many ways can I advise you to break the law as well as potentially harm individuals who, if judgments are rendered against you, you have likewise harmed. First of all you wish to back eight documents. That is fraudulent, either legal, unethical, and totally against any of my principles. Get the point. That you want to involve your "former attorney" to do your fraudulent actions for you is not lessened any liability on your behalf. More importantly, I wonder why he is a "former" attorney. Now, there is a law applicable to transferring assets in fraud of creditors. This substantially limits you in what you can do to "protect" your assets against individuals who have through the legal system obtained a judgment against you. If the court system feels you have done something wrong and damage someone, this is not a forum for how to damage them even more. Having seen to former attorney's maybe they are trying to tell you something. I sure am.

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Answered on 11/16/04, 12:05 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: Protect Real Estate Family Limited Partnership or Trust

It would be unethical to predate a document. Furthermore, it would be a violation of the Fraudulent Transfer Act to transfer assets in order to avoid a claim that is already active against you.

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Answered on 11/14/04, 2:41 pm


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