My sister is on disability and can not afford her car. There is 20,000 owed on it. If she voluntarily turns it in can they find this trust? It wasn’t listed on the application and has a guardian. There might be enough to pay off the car but this is all the money she will have besides her disability. Will she have to go to court and declare this trust?
Distributions to your sister from the trust could possibly be garnished, depending on the type of trust. They cannot go against the trust directly, unless the trust is directly liable on the loan.
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You will need to consult in person with an attorney who will review the trust and advise whether or not it is exempt. Trusts are not one size fits all documents.
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