[WSBAPT] Basic Trust/Creditor Question

[Diane J. Kiepe]

Hello Jacob,

Anything owned by the trust is subject to a judgement against the Trustee in his/her capacity as such.  Whenever I have folks with multiple rental units, I explain the pros and cons of clustering properties into one LLC or Trust versus separate.  The clear down side is all the trust assets are on the table for litigation involving the trust - hope thy had good insurance.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

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
(425) 744-6078 fax
Satellite Office in Bellevue
www.hickmanmenashe.com

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