Judgements against a living trust

[Jay Story]

Hello BP! I am trying to purchase a parcel of land from a family member, however there are a couple judgements against it one of which is much larger than value of the land itself. County records indicate the parcel is held in a living trust and the judgement is against the living trust according to the title company. I thought trusts were protected from judgements so how can this happen in the first place? And does anyone know how to get judgements cleared from title when they are against a trust?"

[Bob Floss II]

@Jay Story Trusts being judgment proof are one of the biggest myths I deal with in my practice. A Trust can absolutely still have a judgment against it. If you set a Trust up right, it can be extremely difficult to ascertain the beneficiary of the Trust. If no one can figure out who is the beneficiary of the Trust and owns the property, it makes it extremely hard for them to place a judgment on the property. However, if someone figures out you own the property or you have to disclose your ownership in the property during discovery of a lawsuit, the property is exposed.