[WSBAPT] Asset Protection Trust (Medical Bills)

[John Creahan]

Hi Brent,
I am sorry to hear about your friend.
I am not aware of any way that a person can set up and fund a trust to protect those assets from current creditors. To the best of my knowledge, those states that allow a debtor to “protect” assets in an “asset protection trust” only do so if the trust was funded when the grantor was not aware of a need for such a trust. In other words, a debtor cannot fund an asset protection trust in order to protect those assets from a known creditor or creditors. In fact, doing so might be illegal – and an attorney who assists a client in committing a crime can wind up in very serious trouble.
For what its worth, even if the client pre-funded an out of state asset protection trust, a Washington court would probably pierce the trust and allow a creditor to reach the assets.
I would strongly encourage your potential client to speak with a good bankruptcy attorney to see what protections might be available.
Hope this helps,
John

John Creahan
www.cairn-law.com<http://www.cairn-law.com/>
206-578-5877
Fremont office:
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103


From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Monday, September 14, 2020 4:09 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com>
Subject: [WSBAPT] Asset Protection Trust (Medical Bills)

Greetings List -

I have a PC who is a friend of an existing client. They are seeking a discussion regarding a pure asset protection trust (not for medicaid qualification) because of piling up medical bills relating to cancer treatment.

My knowledge of this is that they are disfavored in Washington, but I am sure there must be SOME way to do it - if this is a good referral for you, please let me know and I will pass along your information.  The PC is located in the Tacoma area.

Thank you!
brent

Brent Williams-Ruth
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Office/Scheduling Phone: (425) 830-5134

Direct Mobile: (206) 889-7919

e-mail<mailto:Brent at Williams-RuthLaw.com> / website<http://www.Williams-RuthLaw.com/> / facebook<http://www.facebook.com/bwrconsults> /

As of July 1, 2019 - I began operating as the Law Offices of Brent Williams-Ruth a division of BWR Consulting, PLLC. Please note the new points of contact Brent at Williams-RuthLaw.com<mailto:Brent at Williams-RuthLaw.com> and www.Williams-RuthLaw.com<http://www.Williams-RuthLaw.com>
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