My husband just committed suicide. He was the trustee for his elderly mother (still alive) Living Trust and I was named next.His mothers attorney is having the Living Trust ammended taking me out of the loop so my creditors will not attach to the Trust and take all of it leaving his mom with nothing left to live on. Her attorney is then supposed to 'structure' the new Living Trust to include me when she dies it would go to me, any remaining monies, and also protect me should I need to file bankruptcy. Her attorney is also supposed to help me protect my late husbands life insurance monies as well as his Roth IRA monies from creditors and bankruptcy.
Are life insurance and IRA's judgement proof in bankruptcy. Should you set them up some way special. Do you see a conflict of interest with both my mother in law and me using the same attorney? Her attorney will become her Trustee and POA.
1 Answer from Attorneys
If the living trust was properly drafted originally, there should be no reason for "His mothers attorney . . . having the Living Trust amended taking me out of the loop so my creditors will not attach to the Trust"
You should not be "in the loop" as the trustee. As a trustee, you have no interest in the trust property that creditors can reach. If you are a beneficiary, you may be giving up rights by the amendment. There is an apparent direct conflict of interest.