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I thought there was language you could put into a settlement account that would remove the other person from liability?
Could you direct how to find out about setting up such a trust?
Hi again.Q: I thought there was language you could put into a settlement account that would remove the other person from liability?A: There is language that you can use that would state that you would indemnify your spouse, or that you'd be liable for a specific debt. But that language doesn't affect the debt itself. For example, let's say you are each co-signers on a credit card. You can sign a contract with your husband whereby you agree to be liable for the entire debt. But if the credit card goes unpaid, then the credit card company could sue your husband. If he presents your contract with him as a defense in court, he will lose. The reason is that the debt is owed to the credit card company, and so only the credit card company can release your husband of liability. You have no power to release your husband of liability for a debt that he owes to a third party. So, your contract with your husband is meaningless as far as the credit card company is concerned. Your husband's only recourse would be to sue you for breaching the contract. But that's little solace if his credit is destroyed and his wages are garnished by the credit card company.Q: Could you direct how to find out about setting up such a trust?A: I strongly recommend that you retain an attorney to set up a trust. Setting it up alone would be like filling in your own cavity instead of visiting the dentist. That said, there is no law that prevents you from setting up your own trust, and forms can be found online. CLICK HERE. Of course, a form like that is very basic and general. The kind of trust that you need is very unusual, so there won't be an exact form. If you choose to proceed without an attorney, then you can use the form as a template, but then alter it quite heavily to add the specifics of your situation.Does that help?
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