Is property in a living trust at risk in a lawsuit?

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Question:

My grandparents are being sued over a car accident. The other party found out my grandparents' net worth, started seeing dollar signs, and asked for $125,000. Can the money that my grandparents put in a living trust be taken if the other party wins?

Answer:

A standard, revocable living trust -- in which your grandparents are both the grantors (the people who set up the trust) and the trustees (the people in charge of the trust assets until their death) -- doesn't offer any protection if your grandparents lose a lawsuit. Trust property is treated like just any other asset. No wonder some people hide their money under the mattress.

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