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I am concerned about being sued and protecting my house.

Chicago, IL |

Will putting the house in a trust prevent me from losing it?

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Attorney answers 1

Best Answer

You can put your house in a trust, but that just makes it more difficult for the creditor, it doesn't necessarily stop them.

If there is a judgment against you, the creditor can ask you to appear for a "Citation to Discover Assets" at which time you would be sworn to testify. So let's say you appear for the Citation hearing. You are asked the question - "Have you owned any real estate in the past two years?" Since you would be answering under oath, you would have to say "Yes", and then they can get into how you owned the property and what happened to it. If you say "I transferred it into a Land Trust", and presumably you are a beneficiary under the Trust, they could then get a lien against the beneficial interest and force the sale of the interest. If you try to transfer the beneficial interest to someone else, that would be considered a "fraudulent conveyance" and the transaction could just be undone. There may be some other options available to you, but you need to be talking to an attorney who understand "asset protection".

This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance