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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11783
Experience:  JD, MBA
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Can a piece of real property , raw land, be protected from

Resolved Question:

Can a piece of real property , raw land, be protected from creditors if the title is in a trust?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 5 years ago.

Hello and thank you for allowing me the opportunity to assist you.

Yes, under certain circumstances, it’s possible to protect property if the title is in a trust. In order for the property to be protected against the trustor’s creditors, the trust would have to be irrevocable so that the property is truly not his anymore, and he will not benefit from it. In order to protect the property against the beneficiary’s creditors, the trust would have to have a spendthrift provision which states that an independent trustee has full authority over the trust and that the beneficiary has no power to take control of the trust. In other words, in order to shield the property from creditors, the trust has to provide that the person who the creditors may go after has no control over the trust and property in question.

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