- Hi guys, today we're gonna discuss the myth that a revocable living trust protects all of your assets from creditors and from lawsuits.
Recently, someone came into my office to discuss their estate plan. They had just been to an estate planning seminar in which the speaker had told them that all of their assets would be protected from creditors and from lawsuits if they got a revocable living trust.
Well, that is absolutely not true.
A revocable living trust, depending on how it's written will usually provide asset protection for the beneficiaries of a trust. Like your spouse or your children. But very few types of trusts actually provide asset protection for the person who actually created the trust.
If you want to provide asset protection then you really need to have a discussion with your attorney about asset protection trusts, irrevocable trusts, limited liability companies LLC's and insurance policies that you can all use in conjunction to provide you with some type of asset protection. So, then the question I get asked is,
if a revocable living trust does not provide any type of asset protection for the person who created it then why should you even bother to create a revocable living trust? Well, we've discussed many of the great reasons to have a revocable trust in some of our other videos. Like the one right up here.
The first reason is that you can protect your assets for your spouse and your beneficiaries. Asset protection.
The second is that a revocable living trust provides an incapacity plan for you and avoids court interference. And it allows you to maintain control and gives everybody directions on what you want to happen if you were to become incapacitated.
And the third reason is probably one of the biggest reasons that people choose a revocable living trust and that is that it avoids probate and it keeps your estate completely private.
So, if you want asset protection use insurance policies and a domestic asset protection trust, irrevocable trust and business entities to protect your assets. If you have any questions then please do not hesitate to give us a call or download our estate planning strategies guide down below in the description. And I'll also put a link in the comment section as well. This strategies guide will really help you and I think you'll enjoy reading it. But again if you have any questions, just give us a call. Well. that's all for today. You might check out some of our other videos which are gonna be right here. And as always I hope you have a great day and a wonderful week. And we'll see you next time.