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Ask Barrister Your Own Question
Barrister, Attorney
Category: Legal
Satisfied Customers: 33155
Experience:  15 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
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If I am the grantor and also the trustee will that protect

Customer Question

If I am the grantor and also the trustee will that protect my business from any law suites? I own a business worth more than $1millon. Should I name some one else as trustee?
Submitted: 5 months ago.
Category: Legal
Expert:  Barrister replied 5 months ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question..What type of trust is this?...irrevocable or revocable?.Who is the beneficiary of the trust?..thanksBarrister
Customer: replied 5 months ago.
I don't have a trust, just wondering if I should have one.
Expert:  Barrister replied 5 months ago.
Ok, if you set up a "revocable" trust (once that you can make changes to) then it provides zero protection from creditors. If it is "irrevocable" (i.e. no changes allowed), then it does provide complete protection from creditors because the trust owns the property and the grantor has no further control over it..But you can be the grantor and trustee and it doesn't affect the protection of an irrevocable trust. You just can't be grantor, trustee, and beneficiary..However, putting the business in an LLC would serve the same purpose of protecting the assets from any personal creditors of yours while allowing you to make changes to the assets in the LLC if necessary..But if the business itself is sued, then it is just sued and if the plaintiff wins, then they can recover from the business assets whether it is in a trust or an LLC or some other corporate entity like a Subchapter S corp or a C Corp..There is nothing that will prevent a person or business from being sued, you can just prevent one of them from being liable for the other's debts...thanksBarrister.thanksBarrister