how to protect assets when beneficiary has judgment against them?

MC34

New Member
I own a home with a mortgage in Idaho, my parents now live with me after losing their home to foreclosure in Nevada. There is a chance that the lender will pursue them for a deficiency judgment after the home sells at auction. If I should pass away (car accident or whatever), I would like to leave my home and my LLC business to them, however, I would not want a judgment to attachto the home or business. What is the best way to protect these assets in this situation? It's unlikely that there will be a judgment, or that I will pass, but it's a chance nonetheless. Thank you.
 
I own a home with a mortgage in Idaho, my parents now live with me after losing their home to foreclosure in Nevada. There is a chance that the lender will pursue them for a deficiency judgment after the home sells at auction. If I should pass away (car accident or whatever), I would like to leave my home and my LLC business to them, however, I would not want a judgment to attachto the home or business. What is the best way to protect these assets in this situation? It's unlikely that there will be a judgment, or that I will pass, but it's a chance nonetheless. Thank you.


You should investigate placing the assets you wish to protect (your home and your business) into a irrevocable trust.

You could also look into a revocable trust.

The differences are negligible for all practical purposes, and it will all boil down to which one best suits your personal, business, and financial situation.

You want to discuss this in as much detail as it takes for you to fully understand each option, and which option would best serve your family.

I placed all of my assets and holdings into an irrevocable family trust.

Yes, there is a difference with my choice.
The differences are barely discernible to the layperson.

Rest assured they all offer unique tax advantages; but primarily are effective because they allow you preserve, protect, and pass your assets to ONLY those you wish to enjoy them.

Last, but not least, they insulate you from the dilemma facing your parents, and other situations where you could end up being sued.

So, I suggest you meet with your attorney so that he or she could brief you about the trusts in general, and explain the choices available to you in Idaho.

Yes, they can vary between states.

Once you have an understanding, think about it, and visit your attorney who can draft the trusts, or refer you to an attorney that can further complete the process.

You could do it yourself, but if yoru holdings are complex, its best to have a trust attorney attend to it.

I almost forgot, your bank can also advise you about trusts, and possibly create the trust for you, or recommend a bank that can.
 
Back
Top