Living Trust Question
My lawyer is about to file my chapter 7 and my parents just went ahead and put their house in trust to my sister and myself(!). To be fair, they know about my situation, but my mom has a heart condition and decided they couldn't wait. What do I do now? Can creditors go after my share of the trust?
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There is nothing you need to worry about. The trust is not YOUR asset (or more accurately, the assets of the trust are not yours) until it vests (i.e. your parents die).
In a nutshell, the trust acts as an intermediate entity for assets between you and your parents. The trust facilitates the transfer of ownership when the execution event occurs (usually upon someones death).
Now, the problem you may have is if the trust vests within 180 days of you filing BK.
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