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dognlap · Apr 22, 2012, 02:22 PM

Before my mother passed away in Illinois, she was involved in an alleged automobile accident in the pedestrian zone of a department store. The person sued her several years ago, but the case has yet to go to trial. My mother's house was put into a living trust for myself and my sister prior to this incident. My mother had car insurance, but only up to 100K per incidence (we are represented by the car insurance co). Can we put the house on the market (approximately worth 50K) with the lawsuit being unresolved at this point? We did not initiate probate because of this trust. The opposing lawyer supposedly put some kind of hold on the house per the county government.

AK lawyer · Apr 22, 2012, 02:55 PM

Originally Posted by dognlap

... Can we put the house on the market (approximately worth 50K) with the lawsuit being unresolved at this point? ...

What do your mother's attorneys say? It looks like the plaintiff has put a lis pendens against the house, claiming that the trust does not completely insulate the house from their claim. We can't answer your questions without a lot more detail.

If they are wrong in their decision to file the lis pendens, they could have opened themselves to for liability for what used to be called slander on title.

cdad · Apr 22, 2012, 03:50 PM

What has the insurance company said of the settlement or what the other party is asking for ?

ballengerb1 · Apr 22, 2012, 04:20 PM

AK's answer has me calling my attorney tomorrow because I am setting up a trust to specifically provide insulation from suit. Now I have the questions for him. Great job AK. CAL also brings up a good point, the insurance company knows more than they are telling you. Believe me they will not pay out the first $100K without an offer to settle or a real cat fight.

dognlap · Apr 22, 2012, 04:30 PM

Originally Posted by AK lawyer

What do your mother's attorneys say? It looks like the plaintiff has put a lis pendens against the house, claiming that the trust does not completely insulate the house from their claim. We can't answer your questions without a lot more detail.

If they are wrong in their decision to file the lis pendens, they could have opened themselves to for liability for what used to be called slander on title.

The attorney from the insurance company was just recently assigned to us. We have not had any direct contact yet. I was not sure if my question was an appropriate one to ask her. The plaintiff is asking for damages in excess of $50,000. My mother was issued a ticket from the police department and as I understand it, she pleaded guilty even though she claimed that she never saw the person. The individual walked up to the car and supposedly said "you hit me." An ambulance was called, but she refused to be taken to the hospital. Later she claimed that she had previously had surgery on her leg and that this further injury has caused a permanent, but unspecified damage.

dognlap · Apr 22, 2012, 04:34 PM

Originally Posted by ballengerb1

AK's answer has me calling my attorney tomorrow because I am setting up a trust to specifically provide insulation from suit. Now I have the questions for him. Great job AK. CAL also brings up a good point, the insurance company knows more than they are telling you. believe me they will not pay out the first $100K without an offer to settle or a real cat fight.

Both lawfirms are downtown Chicago outfits that apparently specialize in these kinds of things.

cdad · Apr 22, 2012, 04:46 PM

Originally Posted by ballengerb1

AK's answer has me calling my attorney tomorrow because I am setting up a trust to specifically provide insulation from suit. Now I have the questions for him. Great job AK. CAL also brings up a good point, the insurance company knows more than they are telling you. believe me they will not pay out the first $100K without an offer to settle or a real cat fight.

Just remember to ask lots of questions when you go in for your interview. There are 2 main types of trusts that most people create. On is a living trust and is revocable and the other in nonrevocable. Many rules still apply to both as to asset protection and protection from lawsuits.

Ref:

http://livingtrustnetwork.com/estate-planning-center/revocable-living-trust/types-of-trusts.html

AK lawyer · Apr 22, 2012, 05:03 PM

Originally Posted by dognlap

... I was not sure if my question was an appropriate one to ask her. ...

Certainly it is. Is the trustee of the trust a named defendant? If so, is this law firm representing the trust? Ultimately, any settlement decision has to be made by the personal representative of your mother's estate, so, it seems to me, a probate case has to be instituted before the suit can be concluded. In fact, I'm curious as to who the law firm imagines they are representing if, as you say, you have not initiated probate.

Originally Posted by dognlap

... The plaintiff is asking for damages in excess of $50,000. ...

But the limits on the policy are $100 K, right? So only if the judgment exceeds $100,000, will the question of invading the trust come before the court.

dognlap · Apr 22, 2012, 06:03 PM

Originally Posted by califdadof3

Just remember to ask lots of questions when you go in for your interview. There are 2 main types of trusts that most people create. On is a living trust and is revocable and the other in nonrevocable. Many rules still apply to both as to asset protection and protection from lawsuits.

Ref:

http://livingtrustnetwork.com/estate-planning-center/revocable-living-trust/types-of-trusts.html

This was a revocable trust