In a living trust if any of the trustees gets a judgement against them can the trust be attached?

Asked about 4 years ago - Richardson, TX

In a living trust of a wife, husband and grandaughter as trustees , if any one of the trustees get a judgement against them , can the trust be attached?

Attorney answers (3)

  1. Christopher William Peterson

    Contributor Level 14

    Answered . It depends on whether the trustee is also a beneficiary, whether there is spendthrift language in the trust, and whether the trust is revocable or irrevocable. I would have an attorney review your trust agreement and give you an opinion.

  2. Henry Daniel Lively

    Contributor Level 20

    Answered . If the trustee is also a beneficiary this may be possible. The trustee does not own or benefit from the assets of the trust, so the creditors of the trustee cannot attach the trust.

    Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.

  3. Charles Alexander Naegele

    Contributor Level 14

    Answered . Like the attorney before me said, the answer does not depend on whether the trustee gets a judgment against them, but rather whether a beneficiary gets a judgment against them. This is because trustees do not own the trust money, they just have the responsibility for managing the trust assets. Therefore, if the beneficiary of a trust has a judgment against them, the trust assets can be attached, but this does not appear to be your situation.

    Legal disclaimer: The above information is not legal advice and should not be relied upon as legal advice. No representations are made in the above communication nor may any information contained herein be used in a court of law as a representation upon which you may rely.

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