In the case of liability for extensive medical bills, would putting personal property in a Trust keep everything safe from garnishment?

We have 2 houses – 1 is a personal residence and 1 is a rental. Can both be put into a Trust to avoid them being attached in case of extensive medical bills?

Asked on December 14, 2011 under Estate Planning, Colorado


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Depending upon when the medical bills were incurred and for whom placing one's assets into a trust could possibly prevent a judgment creditor from levying upon trust assets assuming the judgment debtor is not the trustee under the trust and the creation of the trust was not created to defraud creditors under the Uniform Fraudluent Conveyand and Transfer Act adopted by many states in this country.

I suggest that you consult with an experienced Wills and trust attorney about your question who is knowledgeable about judgment collections in the state that you reside in.

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