Q: Can I remove a beneficiary on my family trust if he’s involved in a lawsuit?
If a beneficiary on my revocable family trust is currently involved in a civil lawsuit can I remove them from the family trust? Or would a court consider this as trying to hide assets from creditors?
A: A revocable trust can be amended at any time for any reason. Most trust also have "spendthrift" terms that clarify that a beneficiary's' "share" is not available to creditors until it is actually distributed to them. If your trust has that kind of term, you would probably be safe. But you should consult an attorney before making the amendment, the lawsuit may create a number of risks.
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