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Trust Lawyer Cherry Hill, NJ

Can a Trust Protect You in Bankruptcy?When people start estate planning, the most common type of trust that comes to mind is a revocable living trust.  But, while a Revocable Trust has many uses, asset protection is not one of them.  A Revocable Living Trust is entirely available to your creditors.

If you have a large number of assets and are worrying about a future, potential lawsuit, it would be recommended for you to contact a trust lawyer Cherry Hill, NJ has confidence in to help create an irrevocable trust.  There are many types of irrevocable trusts, but these are the types of trusts that protect from your future creditors.

So, if you put your assets in a trust, do they work in bankruptcy to change the rights of the creditors after the money and the debtors who owe the money? If you are concerned about losing your hard-earned assets to creditors, it is recommended to speak with NJ trust lawyer from Klenk Law.

Revocable Trusts

A revocable trust is known also as a living trust. The person who is putting their assets in the trust creates the revocable trust during his lifetime. The grantor, who creates the trust, can make changes to the trust at any time and even has the right to revoke the entire trust. A Cherry Hill, NJ trust lawyer can explain that the main appeal of a revocable trust is that the assets owned by the trust do not need to go through probate at the time of the grantor’s death. Instead, the terms outlined in the revocable trust determine who receives the assets in the trust. The title for any assets in a revocable trust will now read “John Smith, Trustee.” The asset would appear to be no longer in John’s possession but is now the Trust’s asset.

Revocable Trusts and Creditors

The same quality that makes a revocable trust so appealing, that it can be amended or revoked at any time, is the same quality that does not make it useful as a tool to protect your assets. The law states that if the grantor can revoke the trust, the grantor is still viewed, and treated by the law, as the owner of the assets. A revocable trust does not change anything in terms of the grantor’s exposure to their creditors. If bankruptcy schedules ask for a list of your assets, you are required to list the property in your revocable trust.

Irrevocable Trusts

An irrevocable trust is a living trust in which the trust cannot be modified or revoked at a time. The trust terms can state that assets are now unavailable to the grantor. With an irrevocable trust, you do receive protection for your assets, but you lose all flexibility. To determine if creating an irrevocable trust makes the most sense for your situation, it would be advisable to speak with an NJ trust lawyer to explore all your options.

There is a law against fraudulent transfers. This law protects creditors who have a claim against you at the same time you funded the irrevocable trust. The reasoning of this law is that you cannot get out of paying your debt by giving your property to a trust. State laws and the trust’s terms will decide the rights of creditors to money that is paid from an irrevocable trust.

Schedule a Consultation

You have worked hard to earn your assets. If you are worried that you could face creditors and want to protect your assets to pass them down to your future generations, you should contact Klenk Law to discuss all of your options. Read more about irrevocable trusts in my article New Jersey Irrevocable Trusts.  We can work to help you find a suitable option to help keep your family taken care of for years to come.

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Peter is a model attorney who puts his clients first at all costs. His extensive expertise in estate planning and tax planning was a great comfort as we began, and have expanded, our family. He is very thoughtful, generous, and quick witted. His approach towards his business has been an inspiration to his peer group, and his zest for life is extremely infectious. Without reservation, I highly recommend Peter as trusted and cherished counsel

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Anne W.

I saw four lawyers and was told by all of them; I should just forget contesting my mother's will. I knew what happened, but it is very hard to prove undue influence. I contacted the Law Offices of Peter L. Klenk & Associates. Attorney Amanda DiChello took my case. They were very honest and upfront about what would be involved trying to prove what I knew was true. Attorney DiChello may be young but she is extremely knowledgeable and skilled. She listened and understood what I conveyed to her. She knew exactly what information to use and crafted an outstanding interrogatory and many powerful depositions. Attorney DiChello understood the various emotional feelings this case created for my family and me; she was always there for us with a kind and encouraging word. We went to trial. The amount of work which she and her Paralegal did for the trial was incredible. They both knew my case inside and out! Attorney DiChello's powerful interrogative and thinking skills produced a positive outcome. Attorney DiChello did what other seasoned lawyers said was impossible!

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Glenn P.

Peter Klenk ESQ is a thoughtful and capable attorney who we work with on estate planning issues. His firm recently provided us with new Wills, Power of Attorneys and our instructions regarding major health issues. These documents are important for estate and life planning. Peter and his team are masters in the complexities of Estate Law. We highly recommend Peter and his Associates to provide thoughtful advice and outstanding work on these complex issues of the law. Make sure your estate planning documents are up to date, and Peter can be relied on to do an excellent job. Well done Peter!

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Kevin K.

I was referred to Peter after my divorce to put documents together to protect my assets. He suggested a number of documents that would help protect my children and their future. Also, he put together wills, power of attorney and living wills. I initially spoke with him on the phone, he took 30-40 minutes to understand my situation and explain the benefits of having such documents. After a week or two, I met with him in his office and signed the documents. Everything else was remote phone calls and emails. He re-explained these documents and what whom to share. I am in good hands.

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