Legal Question in Real Estate Law in California

In California, can you set up an irrevocable trust to protect your assets after a lawsuit has been filed against you but before any judgment has been entered without out it being considered void as a fraudulent conveyance or any other reason?


Asked on 7/24/19, 4:05 pm

1 Answer from Attorneys

That would be pretty much a classic fraudulent conveyance, and would subject you (and the trustee should they be stupid enough to accept the responsibility) to further liability and attorneys' fees. Do you really think the legal system could even function if it was that easy to escape paying a potential judgment?

Furthermore, even if an irrevocable trust existed before any anticipated liability, presumably you would be the beneficiary and a judgment creditor could force the trust to make any payments or distributions you would be entitled to, and then collect from anything you could receive from the trust.

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Answered on 7/24/19, 5:42 pm


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