WARNING: Many people believe once they set up a Revocable Living Trust and transfer assets into the Trust, those assets are protected from lawsuits. This is absolutely not true.
While Trusts commonly provide asset protection for beneficiaries, few Trusts protect assets owned by the person who created the Trust.
Fully funded Revocable Trusts are dynamite tools. Here’s why:
What Can You Do to Protect Your Assets?
Comprehensive estate planning has a solid foundation of insurance, including homeowners/renters, umbrella, auto, business, life insurances, disability, and the like. Business entities such as the Limited Liability Company are commonly used for asset protection and Domestic Asset Protection Trusts are sometimes used as well.
Your Revocable Living Trust creates a powerful value and can be drafted to provide asset protection for your loved ones. To protect yourself, use insurance, business entities, and, perhaps, a Domestic Asset Protection Trust.