Trusts/Wills

Protection of Assets.

Many single persons, as well as married persons, frequently ask how they can protect their assets from creditors. The basic answer is that, as a general rule, Revocable Living Trusts (RLTs) do NOT provide protection from creditors.

However, to the extent that only one spouse’s assets are subject to attack from creditors, the spouses can develop separate RLTs with a Separate-Property Agreement delineating in advance which property belongs to whom. As long as this is NOT promulgated to defraud creditors, the Courts will honor the separate RLTs and Separate-Property Agreement, and the spouse who is not being sued will NOT lose his or her assets. Family Limited Partnerships are also used in combination with an RLT for this purpose.

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