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Collect a judgment from a California revocable living trust

Collect a judgment from a California revocable living trust is the topic of this blog post.

This blog post will discuss the procedure to collect a judgment from a California revocable living trust.

A revocable living trust is defined as a trust that is revocable meaning that it can be revised or revoked in whole or in part at any time that the grantor who is generally the trustee chooses to.

Many people believe that that forming a revocable living trust will somehow protect their assets from judgments or liens that have been entered against them.  However that is not true as a revocable living trust is not considered a separate legal entity that is separate from the trustee.

It is very similar to a fictitious business name or DBA due to the fact that the debtor who has moved their assets to a revocable living trust still owns the assets in the trust.

Any California revocable living trust where the grantor (settler) has the power to revoke the trust is known as a self-settled trust and the trust property is subject to the claims of creditors. See Probate Code § 18200 which states that, “If the settlor retains the power to revoke the trust in whole or in part, the trust property is subject to the claims of creditors of the settlor to the extent of the power of revocation during the lifetime of the settlor.”

Procedure to collect a judgment from a California revocable living trust.

Probate Code § 48(a)(1) states that a judgment creditor is an interested person.

Thus a judgment creditor has standing to file a petition with the court seeking an order  pursuant to the provisions of Probate Code § 850(a)(3)(C) that the property of the trust, whether real or personal, is subject to the judgment or judgment lien of the judgment creditor.

Probate Code section 850 states in pertinent part that,

“(a) The following persons may file a petition requesting that the court make an order under this part:

(3) The trustee or any interested person in any of the following cases:

(C) Where the property of the trust is claimed to be subject to a creditor of the settlor of the trust.”

California law requires that the petition must be verified and filed in the county where the trust is administered which is usually the location where any real property held in the name of the trust is located.  The petition must be served at least 30 days before the hearing on the trustee, and all beneficiaries of the trust.

In some cases simply filing the petition will convince the trustee to contact the judgment creditor and offer to arrange to satisfy the judgment in full or in part.

Sample petition to collect a judgment from a California revocable living trust for sale.

Attorneys or parties that would like to view a portion of a sample petition for an order under Probate Code § 850(a)(3)(C) that the property of the trust, whether real or personal, is subject to the judgment or judgment lien of the judgment creditor sold by the author can see below.

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995 and has created over 300 sample legal documents for sale.

For licensed attorneys and law firms that need assistance with any California or Federal litigation matters, Mr.  Burman is available on a freelance basis. Mr. Burman may be contacted by e-mail at DivParalgl@yahoo.com for more information. He accepts payments through PayPal which means that you can pay using most credit or debit cards.

Do you want to use this article on your website, blog or e-zine? You can, as long as you include this blurb with it: “Stan Burman is the author of over 300 sample legal documents for California and Federal litigation and is the author of a free weekly legal newsletter. You can receive 10 free gifts just for subscribing. Just visit freeweeklylegalnewsletter.gr8.com/ for more information.

Follow Stan Burman on Twitter at:https://twitter.com/LegalDocsPro

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

The materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.

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