Trust created after deficiency judgement - against one of beneficiaries of trust. Assets of Trusts seizable eventually when legated to beneficiary (living trust now) what if assets in trust used to purchase primary residence for beneficiary who has outstanding deficiency judgement?
Estate Planning Attorney
I don't know what you mean by "when 'legated' to beneficiary". But, if you are referring to a beneficiary receiving his/her distribution from the trust and using the distribution to buy a homestead property, then the judgment of deficiency can be attached to the property, unless the property is being held in a land trust. You need to hire a trust and estates attorney that can help you determine the best course of action that will protect the assets of ALL the beneficiaries and not jeopardize their interest in the trust assets.
Carol Johnson Law Firm, P.A. : (727) 647-6645 : email@example.com : Wills, Trusts, Real Property, Probate, Special Needs: Information provided here is anecdotal and should not be relied upon or considered legal advice. Every matter is different and answers given here are general in nature and may not reflect current Florida law at the time you are reading this posting. Please contact me if you feel you need additional assistance with your matter.
6 lawyers agree
your facts are not real clear or sufficient to give you a complete answer - also without reading the trust you refer to. However, from what you said, if the "intent" of forming the trust was to shield assets intended for the beneficiary who had a judgment against him then this is actionable by a creditor on the legal theory known as "fraudulent conveyance." The result being that the trust could be undone or assets distributed to the creditor to the extent such assets put in trust were allocable to the debtor/beneficiary. You best see a debtor-creditor lawyer or possibly a business lawyer if they have the right experience.
My answer is not intended to be giving legal advice and this topic can be a complex area where the advice of a licensed attorney in your State should be obtained.
Please retain an experienced asset protection attorney to review the documentation and assist you with this matter. Good luck to you.
This information is presented as a public service. It should not be construed to be formal legal advice nor considered to be the formation of a lawyer/client relationship. I am licensed in Connecticut and New York and my answers are based upon the law in those jurisdictions. My answer to any specific question would likely be different if I were to review a client's file and have the opportunity to interview the client. Accordingly, I strongly urge you to retain an attorney in your jurisdiction with respect to any legal matter.