Can creditors take money from an asset protection trust?

No, creditors typically cannot take money from an asset protection trust in California. Asset protection trusts are designed to protect an individual’s assets from creditors, such as in the event of a lawsuit or bankruptcy. Under California law, asset protection trusts can be created to protect certain assets from creditors of the grantor, the person who establishes the trust. A grantor can place certain assets into the trust, such as real estate, stocks, bonds, and other investments. The grantor will still have the right to use the assets in the trust, but creditors will not be able to take them. This is because once the trust is set up, the grantor no longer owns the assets - the trust does. As a result, the assets are not the grantor’s to give to creditors if they come asking for them. The assets will remain safe in the trust and the grantor’s creditors will be unable to access them.

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