Sign Massachusetts Banking Living Will Safe

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[Music] I'm Kevin hilarity I hope you enjoyed this learning about law a video and podcast presented by O'Flaherty law if you need some help please feel free to give us a call at six three zero three two four six six six six at six two zero three two four six six six six we have four free consultations in many areas of law and we have several locations for your convenience thank you so much for watching and listening hi this is andrew with learn about la in this video we will ask the question are my assets safe from creditors inside a living trust we'll discuss whether or not a creditor can file a claim against a living trust in what level of reach a creditor has against assets in a living trust so can a creditor file a claim against a living trust and for the sake of this article we're discussing like a common garden-variety revocable trust right so setting up a living trust also known as a revocable trust is a common part of an estate plan and acts as a way for certain assets to avoid probate most would think that going our that after going through all the trouble to set up a living trust that your assets are now safe within that trust however in Illinois if the trust grantor also known as the settler think the person who holds the trust or who the trust refers to is still alive then a creditor can most certainly file a claim against them to settle a debt and assets aren't any safer than if they were not in a trust basically so why form a living trust in the first place well the main reason most people form a trust as I said before is it's an integral part of getting their assets in order in case of death so that the assets listed in the trust can avoid probate and upon the death of the person the irrevocable trust becomes an irrevocable trust and the ability for creditors to assess access certain assets within the trust changes right so why are my assets not safe from creditors living within a trust the bottom line is because you the settlor are still alive and have total control over the assets in your living trust basically so you can sell property move money around give money to others etc etc the name itself for a revocable trust highlights the fact that the trust can be revoked by you at anytime so until you die and sometimes even after that those creditors can still get at your money so in what scenario can a creditor not get access to the decedent's assets assets once the settlor the trust holder of the Living Trust has died and the trust becomes an irrevocable trust the likelihood of a creditor being able to acquire those funds to pay off the settlers debt diminishes however in some instances a living trust may include an order to pay off debt before distribution to the beneficiaries and this may be the case if the settler knew they would have a debt upon death and wish to avoid any unnecessary legal issues for the involve family members following his or her death in any case a creditor can still file a claim to recover debt after the trust holders death but with the irrevocable trust now in effect and the appropriate to say decedent's assets becoming non prorate the creditors are less likely to be awarded any money could a creditors still go after the non-probate assets awarded to the heirs yes so as discussed in another article can creditors go after non-probate assets a claim can still be filed which would go against the heirs and/or the estate this usually occurs if it is believed that the estate was large and or there was fraudulent activity and assets were removed or moved around specifically to avoid paying the debt bottom line do you do not assume your assets are safe from creditors just because they are in a living trust if you have concerns about the safety of your assets while alive or after death seek guidance from a qualified professional thanks for tuning in hi Kevin o Flaherty again from O'Flaherty law hope you enjoyed our presentation of learn about law if you need some help please feel free to give us a call at six three zero three two four six six six six six three zero three two four six six six six we offer free consultations in many areas of law and we have several geographic locations for your convenience if you found this helpful we'd love it if you subscribe to us on YouTube SoundCloud Apple podcasts or web Ulysse in your podcast or watch your videos thank you so much for watching and listening thanks so much for watching our video if you have any questions feel free to comment below click the subscribe button for new every week and download and review us on iTunes visit learn - about - law comm for other legal related articles and videos visit our business podcast and video blog seizure business comm call us at six three zero three two four six six six six for a free consultation