Legal Question in Wills and Trusts in California

Is Placing Personal Assets Under Trust Safe?

I own a home and a commerical property. I don't have any mortgage on my properties. One of my friends said that I should put my properties under a trust for protection against any circumstances such as law suit. I don't have much knowledge about this. Tried to search web for information but did not really get an answer to may question. Right now I just want to protect my property from any unforseen lawsuits. Thus I need help in determining whether I should place my property under a trust or just get lawsuit protection insurance against my property. If I should place my properties under trust then how I can do that. i mean will I have to place my residential and commercial separately? Also would like to know what are the advantages and disadvantages of placing my property under trust?


Asked on 5/26/06, 5:21 pm

3 Answers from Attorneys
Mona Montgomery Mona Montgomery, Attorney at law

Re: Is Placing Personal Assets Under Trust Safe?

Putting your money into a living trust will not protect the money against your creditors. It protects the money against the posibility of you losing your ability to care for yourself at which point a guardian is appointed to care for you and under the terms of the trust you can declare that you do not want this money used for your personal care. This type of asset protection only makes sense for really rich people who have so much money there is no reason to doubt their ability to afford nursing care out of other assets. The real value of a living trust for normal people $1-$2 million estates, is that it is easier to transfer money after the person dies and avoids probate.

Read more
Answered on 5/30/06, 12:36 am
Ken Koenen Koenen & Tokunaga, P.C.

Re: Is Placing Personal Assets Under Trust Safe?

You should contact an estate planning attorney, rather than your friend. There are some ways to protect your properties, but doing the wrong thing can have disasterous tax implications.

Read more
Answered on 5/26/06, 5:35 pm
Donald Field Donald L. Field, Jr., Attorney at Law

Re: Is Placing Personal Assets Under Trust Safe?

using a trust is the not best (or even advisable) method for lawsuit protection. you should retain an experienced and knowledgeable attorney to develop a practical asset protection and estate plan.

see my webpage on this subject:

http://www.taxrights.com/assetprotection.htm

Read more
Answered on 5/26/06, 7:21 pm


Related Questions & Answers

More Probate, Trusts, Wills & Estates questions and answers in California