Trust or not to Trust

[sflabrkr]

I'm buying an RV that I will fulltime in. I went to my attorney and talked to him about a trust.
I wanted the trust for asset protection in case I'm sued.
He didn't think I needed one for that.
I guess I'm confused as to what a trust is.
I know it keeps you out of Probate.
Can I set it up myself and have a family member be the trustee?
Stefan

[C-Bears]

When full timing in an RV you really need to talk to your insurance folks and make adjustments to your policy. We found that some companies don't even offer a "full timers" type of package.

IMHO if you are worried about any type of liability issues at work then address that accordingly. If you are working on buildings and the possibility exists that something you do could cause that type of water damage, then you need to have the proper extended coverage.

Like others have mentioned, it really doesn't have anything to do with starting to full time in your RV. I know Florida has some extra protection as far as your home goes but you can still be sued and lose everything else and all future earnings in the right situation.

[sflabrkr]

Old-Biscuit wrote:
I don't understand what retiring in 2 yrs and living FT in an RV now has to do with it ???

Aren't you ALREADY covered.........wouldn't your current assets be in jeopardy if sued cause you messed up on the job :H

Living FT in an RV doesn't increase/decrease that liability

Yes I am covered however my home is hoesteaded and as such it can't be taken away because of a debt to any one other than my mortgage company

[Old-Biscuit]

I don't understand what retiring in 2 yrs and living FT in an RV now has to do with it ???

Aren't you ALREADY covered.........wouldn't your current assets be in jeopardy if sued cause you messed up on the job :H

Living FT in an RV doesn't increase/decrease that liability

[IDman]

There sure is a lot of wrong information on public forums!!!

[1mtnman]

sflabrkr wrote:
Here's my problem, I'm an A/C tech and we're retiring in about 2 years.
If I'm working on your 10th floor condo and I break a water pipe you could have $50,000,000 in damage till I shut it off.
I only carry $1,000,000 insurance.
I would not want to lose my home also.

I am certainly no authority on this issue but I had some of your same concerns being a driver at 80 years old and more apt to do something dumb that I might have 20 years earlier. I took out an umbrella policy with my auto insurance carrier. It is quite reasonable and covers all family members for 1 million dollars.

[ScottG]

I did some will/probate work myself. Then when the person passed it cost me an extra 12~13K dollars because of mistakes.
Practicing law is not a DIY project. Dont do it - pay a lawyer.

[kohai]

sflabrkr wrote:
Here's my problem, I'm an A/C tech and we're retiring in about 2 years.
If I'm working on your 10th floor condo and I break a water pipe you could have $50,000,000 in damage till I shut it off.
I only carry $1,000,000 insurance.
I would not want to lose my home also.

Operate your business as an LLC and not as a sole proprietorship. LLC=limited liability company. This creates an extra layer of protection because a suite against the company is limited to the assets of the company. Typically, someone suing your company will also sue you, but they have the burden of proof to show that you as an individual are liable and not the LLC. That usually means criminally liable or grossly negligent. The LLC creates an extra hurdle for them to get to your personal assets. You have to operate the LLC correctly for that barrier to exist (separate accounting, checking accounts, properly handling your LLC paperwork each year, etc).

Another layer of protection would be to add a personal umbrella insurance policy that would assist if you got sued individually.

[sflabrkr]

DutchmenSport wrote:

sflabrkr wrote:
Here's my problem, I'm an A/C tech and we're retiring in about 2 years.
If I'm working on your 10th floor condo and I break a water pipe you could have $50,000,000 in damage till I shut it off.
I only carry $1,000,000 insurance.
I would not want to lose my home also.

Real life is, anyone can sue for anything. You can't stop that.
Real life is, with a good lawyer and enough money, you can get out of almost anything.

If you are "bonded", doesn't that protect you being personally sued?... well, there again, anyone can sue, but if "bonded" they can't get very far against you personally. Are you "bonded" against such events?

No, I'm insured with liability insurance

[DutchmenSport]

sflabrkr wrote:
Here's my problem, I'm an A/C tech and we're retiring in about 2 years.
If I'm working on your 10th floor condo and I break a water pipe you could have $50,000,000 in damage till I shut it off.
I only carry $1,000,000 insurance.
I would not want to lose my home also.

Real life is, anyone can sue for anything. You can't stop that.
Real life is, with a good lawyer and enough money, you can get out of almost anything.

If you are "bonded", doesn't that protect you being personally sued?... well, there again, anyone can sue, but if "bonded" they can't get very far against you personally. Are you "bonded" against such events?

[sflabrkr]

Here's my problem, I'm an A/C tech and we're retiring in about 2 years.
If I'm working on your 10th floor condo and I break a water pipe you could have $50,000,000 in damage till I shut it off.
I only carry $1,000,000 insurance.
I would not want to lose my home also.

[MarkTwain]

sflabrkr wrote:
I'm buying an RV that I will fulltime in. I went to my attorney and talked to him about a trust.
I wanted the trust for asset protection in case I'm sued.
He didn't think I needed one for that.
I guess I'm confused as to what a trust is.
I know it keeps you out of Probate.
Can I set it up myself and have a family member be the trustee?
Stefan

1. I had a lawyer set up my Living Trust so in the event of my death all my assists,monies etc. will be distributed based on my wishes. This will all keep your estate out of probate and give your trustee immediate access to your trust in the event of your death and/or if a doctor determines that you no longer have the "mental capacity to make rational decisions". Use a "durable power of attorney" not a "springing power of attorney. Your lawyer will give you a legal explanation of the difference. When you set up your trustee(s) /executor be sure and list them in order of succession 1st., 2nd, 3rd. I also suggest that when you complete your Living Trust, that each family member immediatly receives a copy of the trust. This can avoid any potential future legal disagreements among family members. When ever there are issues of money, the potental for bringing out the worst in individual family members is always present.
I also recommend that you complete an Advance Health Care Directive (AHCD) immediately. This document is separate from your Living Trust which can be completed if you don't do complete a Living Trust. You can contact your local Ombudsman program or hospital and they will give you a copy. You can do this on your own or your local Ombudsman will do it for you at no charge. Make sure each family member has a copy. This avoids any potential problems/disagreements with family members regarding your wishes related to any end of life medical decisions about your life.


2, Talk with your financial advisor and he will set you up with an Liability Umbrella policy just to protect you against be sued. I have a 2 million dollar liability policy. This protects you if you are in a severe accident where someone dies for example and the party sues you beyond what your regular auto insurance covers.

[DutchmenSport]

I think it would would be much easier and simpler to just have your RV insured out the wa-zoo to cover any situation.

Under (non-full time scenarios), homeowners insurance will cover the contents of your camper (anything not anchored down or screwed down for loss or theft. Your automobile policy covers the vehicle while in transit (moving on the road), both property damage and liability. Your camper insurance covers any physical damage that may occur when unhitched, including acts of nature.

In the event of a dog bite, or someone falls on your campsite, and somehow you are found negligent (and not the campground), that would fall under homeowners insurance.

Apart from this, I (personally) don't see how you can much better protect your assets, unless you are referring to your investments, savings, and bank accounts. Unless you have greedy kids that somehow are attempting to declare you "nuts" and get you tossed into an a nut-house so they can sieze control of your money or some bizarre scenario like this, I don't see what "protection" is really needed, other than what you would normally do any other day of the week.

If you don't have any special financial protection now, why should it be any different full timing?

If you give your spouse 100% power of attorney over everything in your life, and your spouse gives you 100% power of attorney over everything in their life, I think you are pretty much "protected" against anyone attempting to intrude on your (financial) assets. Apart from this, I don't see any advantage for a "trust".

My wife has 4 trust funds set up for our grand kids. We are putting a small amount each week into the funds for them, so when they graduate high school, they will get the trust fund. Until then, they cannot touch it.

Trust funds are set up, as in wills sometimes, when the assets are put into a fund and a caretaker of the fund is appointed for the purpose of taking care of a surviving child.

Apart from these two types of examples, I don't know how a "trust" would help protect your assets.

Here again... I am no lawyer, and my life-experiences really means 'squat!' legally, but as someone stated above, if your own lawyer gave you advise and now you're turning here? Well ... maybe your just not listening to what everyone is saying. Sorry. I suggest you forget the idea of a "trust" and just get lots and lots of insurance!

[sflabrkr]

jorbill2or wrote:
So your not happy with your attnys advice and are seeking legal advice on a RV board. Ok then , I'm not an attorney but I've heard of trusts being used for tax reasons but not lawsuit protection . Could you form a corporation ? That would protect you but not the coach. I guess I've never heard this concern before with anyone I know.

I'm not the smartest guy out there(product of a public school system) and I figured someone else can say it in words that I would understand better.
I have a corporation but as far as I understand since I have a professional license they can go after me as well.

[jorbill2or]

So your not happy with your attnys advice and are seeking legal advice on a RV board. Ok then , I'm not an attorney but I've heard of trusts being used for tax reasons but not lawsuit protection . Could you form a corporation ? That would protect you but not the coach. I guess I've never heard this concern before with anyone I know.