Will putting my home in a Living Trust protect me if I ever got sued? What other actions should I take for LLC company?

Asked about 1 year ago - 90049

Living Trust protect my home

Attorney answers (4)

  1. James P. Frederick

    Contributor Level 20

    13

    Lawyers agree

    Answered . No. A living trust generally does not protect against lawsuits. In some cases, irrevocable trusts do this. You need to share your facts with an attorney to make sure that things are set up properly and that you do not have any fraudulent conveyance issues.

    If your company is already set up as an LLC, your liability is limited to the LLC assets, just by virtue of being within the LLC.

    Insurance may be a good way to take care of this issue, depending on what the concerns are.

    James Frederick

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

    Contributor Level 8

    8

    Lawyers agree

    Answered . I agree completely with Mr. Frederick: Putting your assets into a revocable living trust -- one in which you have complete and utter control over the assets -- will not protect these assets from creditors.

    99% of the law follows common sense: Would it be fair for someone to avoid their creditors by simply transferring their assets into a revocable trust that they still control and get the benefit from? No, it wouldn't, and consequently the law doesn't allow for it.

  3. Dagmar Pollex

    Contributor Level 12

    9

    Lawyers agree

    Answered . No - a revocable living trust does not protect your assets if you are sued. If you have formed an LLC for a business (including rental real estate) an LLC is designed to protect your other assets if you are sued as a result of the business owned by the LLC.

  4. Charles Adam Shultz

    Contributor Level 19

    3

    Lawyers agree

    Answered . A living trust provides no creditor protection. In California an irrevocable trust in which the settlor is also the beneficiary likewise does not provide protection.

    What is your question on an LLC? What assets are you putting into the LLC? What is the purpose?

    The general advice above does not constitute an attorney-client relationship: you haven't hired me or my firm or... more

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