My question involves estate planning in the state of: CA
Here the deal, My father is the trustee and beneficiary along with three other siblings of a trust his parents created which are deceased . real estate property has been liquidated . His siblings would like to create a trust for their children from these assets. But My father and Aunt have creditors and does not want to lose federal assistance. I understand that a creditor can come after assets of a trust if grantors of a trust has creditors Correct?
Can the trustee somehow simply bypass the beneficiaries of a trust and fund new trusts?
Or is it best to leave some money in trust and many smaller disbursements.