Trusts are drafted to protect assets, but they are not foolproof in protecting against criminal indictment. The purpose of a trust is just as important as the trust corpus.
In Minnesota, we can turn to Trust Law 501C.0404 for guidance on an inditement. If a trust is established with the intent to defraud creditors for example, it may not be able to protect assets from seizure in the event of criminal charges. Additionally, if the trust is found to be involved in criminal activity or used to shield criminal proceeds, it may be subject to forfeiture by law enforcement authorities.
It’s important to note that simply creating a trust does not automatically protect assets from legal action. The legality and legitimacy of the trust, as well as the actions taken in establishing and managing it, are crucial factors that can impact its effectiveness in asset protection.
It’s always recommended to seek the advice of an experienced attorney with expertise in asset protection when or if you are charged with a crime or need support with asset protection issues.
Estate Attorney Jasper Berg