If my parents put me in trust, can I still protect my house from liability??

Asked 12 months ago - Elgin, IL

My parents bought my new house in Cash.
Owner of my house is my parent because I want to protect my house from my creditor.
I have unpaid home equity loan from previous marital house which was foreclosed but sold after divorce.
If my parents put me in trust, can I still protect my house from liability??
What is the best way to protect my home from creditor?

Attorney answers (3)

  1. Judith Anne Schening

    Contributor Level 14

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    Answered . Because your parents own the house, this is really an issue for them and their estate planning. They could create their own living trust and title the house in their trust. The trust could then provide that, after their deaths, the house stays in their trust for your use during your lifetime, and then goes to someone else upon your death. This way the house is never your property and thus not subject to your creditors. I recommend your parents consult an estate planning attorney in their area about how to transfer property to their children and keep it protected from their children's creditors.

    ***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps.... more
  2. Peter J Weinman

    Pro

    Contributor Level 17

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    Answered . If your parents bought the house with cash, why are you calling it your house? Are you worried about what happens when they die? They should sit with an estate planning attorney / elder lawyer to put together their estate plan, which may include a trust to shield their legacy from your past.

    I may be guessing or not licensed in your state. No atty/client relationship exists. I earn my living collecting... more
  3. Michael R. Stetler

    Pro

    Contributor Level 13

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    Lawyer agrees

    Answered . Well, based on what you've said, it is not your home. You just live there. Your parents own the home in their name and bought it with (presumably) their cash. Now, if your saying that it was your money used to purchase the house in your parents' names, then stop asking questions here and go talk to an attorney. Otherwise, your parents can control and place ownership of the house as they so decide with their estate planning lawyer. It seems like it would be pretty well protected from your creditors right now and likely would remain so even if put into a proper trust.

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