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

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

Posted

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. LEGAL DISCLAIMER I am licensed to practice law in the State of Illinois and have an office in Kane County. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you this answer helpful.

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Posted

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 points for "helpful" answers.

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Posted

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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