If someone has been served papers for a civil lawsuit, can they set up a trust and then transfer real estate to the trust ?

While asset protection can be accomplished through the creation of a trust, any fraudulent transfer to avoid paying civil damages is, as a general rule, not allowed. There simply must be a non-fraudulent rationale to support the trust's creation for it to survive attack.

As for the status of a person's assets and a freeze upon the mere filing of a civil suit, the general rule is that allegations in a lawsuit complaint are just that -- allegations. Until such time as a final judgment is made in the lawsuit, those allegations remain unproven assertions.

I hope this helps.

You need to confer with a lawyer to find out what the chances are of losing the suit. A good defense means no loss to you. A lawyer can also negotiate a possible settlement or long-term pay out. Setting up a trust with the sole purpose of avoiding a judgment is an act of fraud,and can subject you to severe penalties. There can be no attachment of an asset until a judgment is entered. After a judment is entered, if it exceeds the total worth of your assets you may file for bankruptcy. Civil Courts rarely freeze assets but crimina ones do if you have committed fraud and pursuant to a conviction in criminal couirt, the government wants the money to pay those you have deceived. You may find my legal guide on what court am I in and why? as well as the one explaiining litigation terms helpful.