Can a Trust Protect from Creditor Claims?
In these difficult economic times, some have suggested that a Living Trust can be used to avoid creditor claims here in Idaho.
The argument goes something like this: If you create a Living Trust and then transfer everything you own into that trust, you no longer own that property. A creditor who has a judgment against you cannot touch the property since you are no longer its owner.
This claim is a myth. Fortunately. Indeed, most of us would be uncomfortable living in a country where genuine legal obligations could be so easily nullified. It would make all financial transactions much more tenuous.
While such a maneuver might slow creditors down a bit, in the final analysis, Idaho judges would not have any difficulty in piercing such a trust and retrieving the asset long enough to allow the creditor to use the asset to satisfy the judgment.
So what can you and your lawyer do to protect your assets from creditor claims here in the Boise, Meridian, and Eagle area? Two things: Pay your debts as they are incurred and purchase a good general liability insurance policy such as a homeowner’s policy or umbrella policy. If you do those two simple things, you’ll sleep better at night knowing that your assets are relatively secure.
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Whether you live in Boise, Meridian, Eagle, Star, Nampa, or other nearby communities – in fact, anywhere in Ada County or Canyon County – for additional easy-to-understand information on Wills, Trusts, probate, and estate taxes, visit the user-friendly website at BarryPeters-Law.com. Then call attorney Barry Peters’ offices at (208) 939-2600 for an expedited appointment to begin the process of setting up your own Living Trust. Or, if you have questions, please call Barry for a free telephone consultation or visit his Q & A pages at BarryPeters-Law.com/common-questions . As always, your total satisfaction is guaranteed by Barry Peters, Attorney at Law, where all clients receive individual attention to the details of their unique circumstances.
Wit & Wisdom
Greater than a mighty army is an idea whose time has come.
Testimonials
We were both very pleased with your services. You were professional in every way. We found you to be forthcoming and honest about what a trust may or may not be able to do in the future. You gathered our information effectively and prepared our documents timely. During our final meeting you presented our documentation in an organized and efficient manner, and clearly communicated the necessary steps to complete the trust. Thank you for your time and your work on our trust. (Don and Lih S., Boise, Idaho)
