A family member is concerned about a potential lawsuit and their house is almost paid for. They are asking me to 'purchase' it to protect it from possible litigation. Could that backfire on me if I were to do that? I would then 'rent' the property to them. I don't want to jeopardize my property in the process of trying to help protect theirs. HELP!
1 Answer from Attorneys
Dear Concerned. You are correct; it could backfire. A better solution is to have the owners of the real property form a Revocable Trust, naming themselves as Trustees, in addition to naming a Successor Trustee in the event of disability, incompetence, or death. Immediately after proper formation of the Trust, also place the property and record it in the Revocable Trust with the County Recorder where the property is located.
Potential future creditors will have little success in being able to attach or attack the real property because it is protected, and the individuals are no longer in title and are also protected from creditors' claims.
Good luck and God bless.
J. Norman Stark
“WHERE EXPERIENCE COUNTS, COUNT ON MY EXPERIENCE”
J. NORMAN STARK, ATTORNEY*
ARCHITECT EMERITUS (Ohio) A.I.A., N.C.A.R.B.
1109 Carnegie Avenue Cleveland, Ohio 44115
(216) 531-5310 x7100 Cel.:(216) 310-7100 Email: [email protected]
*Author: The Construction Claims Investigation Worklist®