Myth: A Revocable Trust Can Protect Your Assets From Lawsuits
Fact: There are a couple of reasons why a Revocable Living Trust will not protect your assets from lawsuits: (1) You have the ability to change the terms of the trust when ever you want and you have the ability to add assets to the trust and to remove assets from the trust (i.e., you have total control over the assests), and (2) Although the assets in the trust are titled in the name of the trust, you still personally own the assets.
Therefore, a Revocable Living Trust cannot shield your assets from lawsuits or the claims of creditors. If you are interested in Asset Protection Planning, you should seek the services of an estate planning attorney to discuss creating a comprehensive asset protection plan.
