I understand, in general, a living trust
is not the best vehicle for asset protection
. However, if a trust is just holding stocks, can that Trust gain the type of liability protection against an outside charging order that multimember LLC generally get, if the Trust is setup with multiple trustees?
For example, a trust is setup with four family members as the 4 trustees, and the trust holds $100k in stocks.
One of the 4 family members/trustees gets a judgement against them for the activities from their non-related business operations or personal situation. The judgement exceeds that particular trustee's net worth and non-trust assets.
For example, say they caused an accident
and didn't have enough insurance
, and are liable for $500k.
Is the $100k of stocks in the Trust safe?
Same question, but with an example of a trust having the title
to a $1,000,000 house. One of the 4 trustee/beneficiaries
get's a divorce with no pre-nup. Is the house safe? Or does it have to be sold just to pay the divorced trustee's settlement? If the trust does not specify that the 4 trustees/beneficiaries are equal, how is the share determined anyway?