Legal Question in Real Estate Law in California
Does a Special Needs Trust protect against lawsuits?
My husband represented a buyer to purchase a property which closed escrow in Oct. 2003. On Feb. 1, 2004 we received a letter from an attorney representing the buyer stating that the buyer is asking for over $100,000 because she had a company find ''mold'' in the home.
Although everything was done according to the law to investigate the condition of the property prior to the close of escrow, we have seen many buyers win mold litigation cases, nevertheless, and don't know how this will end up. Naturally, our concern is for our minor terminally ill son and the equity in our home and other assets which are being used for his care. Can we do anything legally and ethically to protect our assets at this time, since an official lawsuit has not been filed?
3 Answers from Attorneys
Re: Does a Special Needs Trust protect against lawsuits?
The filing of a lawsuit is not the critical time period. Rather, knowledge of a creditor is. Thus, if you move assets with the intent to avoid, delay, or hinder a know creditor (which includes a potential plaintiff in a lawsuit), you can be subject to a fraudulent transfer lawsuit. The same is true if you exchange assets for something of substantially unequal value.
Notwithstanding, there are many things you can legally do to provide for retirement and to utilize assets for legitimate purposes. Your hands are NOT tied.
Give us a call to discuss your options. The call is free.
Re: Does a Special Needs Trust protect against lawsuits?
i am assuming that your husband and his brokerage carried insurance. if so, notify the carrier right away. call me if you want to discuss further. i will not charge you to consult on this matter.
thank you.
daniel king
818 587-9299
Re: Does a Special Needs Trust protect against lawsuits?
You may want to file a homestead on your home. You may contact me for litigation defense if necessary.
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