TRUSTS | How many different types of TRUST are there? What is the up/down sides to forming a TRUST?

Asked about 1 year ago - Victorville, CA

I want to protect house from lawsuits or liens... I want to protect cars from same; in addition want any traffic-tickets issued to business name rather than "personal/owner name". I was able to avoid a automated-traffic ticket; as I would/could not identify myself as the driver!

Attorney answers (3)

  1. Maximillienne Elliott

    Contributor Level 11

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    Answered . Asset protection and estate planning, though related, are different strategies used to accomplish different goals. If your objective is to avoid liability because you are in a high-risk profession, e.g., a doctor, then the primary strategy to maintain your assets for your enjoyment should be asset protection. Generally, a revocable living trust is not a viable asset protection vehicle, nor is a land trust. Both can be reached with appropriate judgments. A corporation can also be "pierced" if its only reason for existing is to avoid creditor liability. Furthermore, transferring assets into most vehicles within a certain period solely for the purpose of avoiding creditors is referred to as a "fraudulent transfer" and will be undone as quickly as the creditor can get a judge to hear its case.

    Key tools in asset protection, or "wealth preservation," are malpractice insurance, umbrella insurance, a LLC, domestic asset protection trusts, and offshore trusts. LLCs are useful tools and require complex planning. Domestic asset protection trusts are prepared under the laws of various states and are just now starting to be tested in the courts; the tests have been mixed. Offshore trusts can be viable depending on the jurisdiction and one must be willing to allow a trustee in another country to have legal ownership of your assets.

    I strongly recommend you contact an attorney with experience in wealth preservation so that you don't unwarily set yourself up for contentious and costly litigation later. Spending time and money to insure your net worth is more prudent than spending what will be more time and a lot more money to pay court costs, attorneys' fees, penalties, and judgments because you tried it on your own.

    The answers and information I provide here, via a link, or any other reference do not create an attorney-client... more
  2. Steven M Zelinger

    Pro

    Contributor Level 20

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    Answered . There are many different types of trusts. Protection from creditors is possible but usually not cost-effective for most "average" people. For most people having adequate insurance is sufficient. In some situations there are strategies for keeping assets separate from a spouse, etc. Avoiding traffic tickets is not a typical worry of someone trying to shield assets.

    This is not legal advice nor intended to create an attorney-client relationship. The information provided here is... more
  3. Joseph Franklin Pippen Jr.

    Pro

    Contributor Level 20

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    Answered . Too many types to count and trusts can be created for many types of special purposes.
    The standard trusts avoids probate and guardianship as well as provides privacy and speed of administration.

    The answer given does not imply that an attorney-client relationship has been established and your best course of... more

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