[WSBAPT] Asset Protection Trust (Medical Bills)

[Martin]

I just saw this.  I have gotten many questions from people hounded by taxes and reading about trusts, etc.  Some are of course outright tax shelter frauds but even those that aren’t don’t protect against known creditors.  One thing that I think can work, if not abused, is selling something on a contract to a third party with what they call a handshake under the table that it will be reconveyed at a later date.  But installment payments have to be made on an arms length price and you have to see the light at the end of the tunnel to take back or it isn’t worth doing.  But a boat or something of high value, but a house where you still live, even if you pay rent is an invitation to challenge.  

 

From: wsbapt-bounces at lists.wsbarppt.com On Behalf Of John Creahan
Sent: Monday, September 14, 2020 7:10 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Asset Protection Trust (Medical Bills)

 

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

 <http://www.cairn-law.com/> 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 <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto: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 <mailto: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/>  /  <http://www.facebook.com/bwrconsults> facebook / 

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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