[WSBAPT] Basic Trust/Creditor Question

[Philip N. Jones]

If the trustee was negligent, then all of the assets of the trust will be exposed to the liability.  That's why some people and some trusts put the two houses in two separate LLCs.  But of course the first line of defense is adequate insurance.  If you have adequate insurance, the assets of the trust do not come into play.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
900 S.W. Fifth Ave. Suite 2500
Portland, OR 97204
pjones at duffykekel.com<mailto:pjones at duffykekel.com>
(503) 226-1371 - office
(503) 853-1482 - cell
(503) 226-3574 - fax

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jacob Menashe
Sent: Wednesday, September 14, 2022 12:20 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Basic Trust/Creditor Question

I have a question that seems basic but I don't think I know the answer and after a bit of looking haven't been able to find it. An irrevocable testamentary trust (non-grantor for sure) owns two rental properties. Someone slips and falls at Property A. Is Property B, also owned by the trust, potentially liable to pay damages for the injury at Property A? If you or I owned two rentals, Property B would be at risk. But is it different if the owner is a trust? I am thinking maybe not, but I can't pin that down. All responses appreciated!

Thanks,

Jacob

Jacob H. Menashe
Hickman Menashe, PS
4211 Alderwood Mall Blvd., Suite 204
Lynnwood, WA 98036
(425) 744-5658 phone
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