| Alan R. Horvath, Attorney at Law |
| Frequently Asked Trust Questions |
| Phone: 209 754-5291 Fax: 209 754-5293 |
| ahorvathlaw@sbcglobal.net |
P.O. Box 81
596 Mountain Ranch Rd.
San Andreas, CA 95249
596 Mountain Ranch Rd.
San Andreas, CA 95249
What is an Asset Protection Trust?
Under certain circumstances the assets in a trust are unreachable by the creditors of the person who created the
trust. However, caution should be exercised before you create a trust solely for that purpose. There are two
important California laws that effect whether or not a creditor can reach trust assets. Trust law provides that the
creditors of the person who created a trust, can reach trust assets as long as the trust is revocable.
Furthermore, the Uniform Fraudulent Transfer Act, will set aside a transfer made by a creditor without receiving
reasonable compensation in return if that transfer will leave the creditor without the assets with which to pay debts
he is incurring or has already incurred.
Taken together, this means that you can use a trust to protect assets only from future creditors, and only if you
forego any future access to the funds yourself.
Under certain circumstances the assets in a trust are unreachable by the creditors of the person who created the
trust. However, caution should be exercised before you create a trust solely for that purpose. There are two
important California laws that effect whether or not a creditor can reach trust assets. Trust law provides that the
creditors of the person who created a trust, can reach trust assets as long as the trust is revocable.
Furthermore, the Uniform Fraudulent Transfer Act, will set aside a transfer made by a creditor without receiving
reasonable compensation in return if that transfer will leave the creditor without the assets with which to pay debts
he is incurring or has already incurred.
Taken together, this means that you can use a trust to protect assets only from future creditors, and only if you
forego any future access to the funds yourself.
 |
| |
 |
| |
 |
| |
 |