Thursday, 18 September 2014

Does a Trust Fund protect your money in that fund from creditors and if so, to what degree?

Question

Does a Trust Fund protect your money in that fund from creditors and if so, to what degree?



Answer

Maybe yes, maybe no. That answer really depends on the terms of the trust,the state in which it was established, who the grantor/trustee/beneficiaries are, and for what purpose it was set up. I would have an attorney review the trust to answer that important question.



Answer

Not if is to merely avoid creditors.



Answer

Possibly, if the trust is irrevocable, was not created solely to avoid creditors claims, and the debtor has no interest as a beneficiary.



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