All Topics / Legal & Accounting / Can a trust be sued?

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  • Profile photo of Misty1Misty1
    Member
    @misty1
    Join Date: 2004
    Post Count: 348
    October 19, 2004 - 12:27 pm

    Is there ANY way for the owner of a trust,claiming “poor”,that owes money,to be sued? Or to otherwise access money avail thru the trust? Or is it pretty well “fail proof”?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,436
    October 19, 2004 - 12:53 pm

    Hi Misty

    Sorry, I can’t really understand your questions fully, but…

    A trust is not a legal entity, so cannot be sued. It is the trustee that is the one that can be sued. Maybe even directors of the trustee company can be sued too, if they have made bad decisions.

    If the trust property is used as security, and payments aren’t made then the property can be taken by the mortgagor.

    If the trustee or director of the trustee company gives a personal guarrantee for loans or rent etc, then they will be personally liable and their non trust assets will be at risk. etc

    ps. I am not a lawyer.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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