QUESTION
can the IRS or creditors attach liens, judgement or demand payment from a successor trustee while im alive and acting as the trustee
Asked on Nov 05th, 2015 on Trusts and Estates - California
More details to this question:
I want to put my son as my successor trustee to handle the trust after im gone or i cant do it anymore..he has a few dings in his credit and making small payments to the IRS. my question is if I set this trust up and make him my successor trustee is there any way they can attach the trust to pay his debt while im alive
1 ANSWER
Estate Litigation Attorney serving Redlands, CA
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The short answer is no, a creditor of the trustee cannot attach the trust assets held for a different beneficiary. That is because a trustee is a mere nominee holding bare legal title for the benefit of the equitable owner fo the trust assets, the beneficiary. However, if he later becomes the beneficiary of the trust, then the creditors may be able to attach those assets.
Answered on Nov 14th, 2015 at 1:17 PM