[WSBAPT] Trust Beneficiary With Debts

[Brink, Kerry]

Greetings,

Is this a correct understanding of the mechanics if:

Child owns small  interest that he received from parents in a couple of LLC's.
Child has a host of creditors.
Child creates an irrevocable trust with 3rd party trustee, retaining the right to receive income and transfers his interest in the LLCs to the trustee.
Creditors obtain judgment against child.

Trust would not protect corpus from child's creditors (RCW 19.36.020).  Is it correct, therefore, that Creditors could garnish the trust account - but have no ability to obtain a charging order against the LLC (since interests owned by the trust)?

Thank you for your thoughts.

Best regards,

Kerry E. Brink
Kerry E. Brink * Attorney

Estate Planning, Probate, Elder Law



PO Box 1315
1201 Pacific Ave Suite 1900
Tacoma, WA   98401-1315
www.vjglaw.com<http://www.vjglaw.com/>

* kbrink at vjglaw.com
* 253.383.3791 (main)
         253.591.8555 (direct)
         253.383.6377 (fax)
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