Article’s tone is rosy, but there are a lot of concerns here. In addition to the seasoning requirement in the asset protection trust statute of the trust situs, there is a ten year seasoning under US bankruptcy law, plus this is CA realty owned by a CA resident — CA courts could decide to ignore the out of state asset protection scheme. (Domestic asset protection trusts are no sure bet even with personal property or assets held outside CA, due to a number of issues including Full Faith & Credit; they are much weaker if they own real property located within CA.)
Either way, rolling the trust probably wasn’t the wisest call. Asset protection trusts rely on a seasoning period before they shield the property from creditors.
Source: Demi Moore Pool Death Puts Asset Protection To The Test | The Trust Advisor
