can I do an irrevocable trust to protect my assets from personal liability?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

can I do an irrevocable trust to protect my assets from personal liability?

hello,
I have been in a car accident in Florida, I am at fault.The other party made a
claim to have her car repair, that is done. However her lawyer sent a letter to
my insurance company saying that they are representing the person who was
driving and she was injured in the accident, also requesting additional
information on my policy.
‘The layer has not yet send the formal demand to my insurance company’.
Question Can I, at this point, do an irrevocable trust to protect my assets
from this demand that is coming in the near future. I do own several rental
properties that are under single member LLCs and one rental property that is
under my name and my husband.
Kind regards,
Ms Damiano

Asked on July 5, 2016 under Accident Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, you can't safely do an irrevocable trust at this point: courts have the power to set aside transactions which were clearly done to defraud creditors or hide assets from them, including potential judgment creditors. Since you are already aware you may be sued, if the other side pursues the money in the trust, most reasonable costs would correctly see what you did as an attempt to defraud the other side and let them get at the assets in the trust. For a trust to protect you, it really should be done *before* you know or have reason to think you will owe money.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption