Legal Question in Wills and Trusts in Pennsylvania

Re: Assett protection from sale of C corporation

I am not sure why you are posting this question in the Pennsylvania forum. Michigan state law will dictate on this issue.

As far as general corporate law answer, if the company is a true C corporation and the company follows the rules of corporate compliance based on the state guidelines, (annual meetings, proper documentation, shares maintained etc.) then any creditors would not be able to pierce the corporate the veil and you as shareholder would not be liable for the acts of the corporation. Now there are many caveats because many times people believe they are "true" corproation but actually are not and in those cases you could be liable. Also if you are an officer or a board memeber there is a different standard.

As far as protecting assets in irrevokable trust, based on what you have stated that would not protect you from liable if it is found that the sharehiolders are liable. If you had any assets in your name they could be attached by creditors, the assets in the irrevokable trust although coming from the sale would not be touched that really does not matter.