Legal Question in Wills and Trusts in California

Re: Family Trusts

The Trust itself can't be attached. Only remedy is for a creditor

to attach the beneficiary's interest in the trust with a charging order.

This entitles the creditor to the income due the beneficiary. If the trust has a spendthrift clause

then the income doesn't have to be paid to the beneficiary whose

interest was attached with the charging order.

Re: Family Trusts

If you are talking about a typical revocable living trust that doesn�t pay your kids anything while you are living, no, it cannot be attached. If someone does get a judgment while you are alive it is a simple matter to amend the trust to provide protection of the assets. There are there options too.

Re: Family Trusts & creditors

The trust would have to be reviewed to determine whether creditors could get at a daughter's share. If it has "spendthrift" language, the share is protected as long as it remains in the trust, with some caveats.

Generally, the creditors would be entitled to whatever your daughter is entitled to demand from the trust. Thus, if the trust calls for her share to be distributed outright, creditors can attach this. If she's entitled to the income, creditors can attach this. Generally, if the trustee has discretion to not distribute income/principal to your daughter, and decides not to, creditors cannot force a distribution.

If creditors are a concern, have an estate planning attorney review the trust with this in mind and offer suggestions.