Many people believe that 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.
No Immediate Asset Protection? Why Should You Create a Revocable Living Trust?
Fully funded Revocable Living Trusts are excellent 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 insurance, disability, and the like. Business entities such as Limited Liability Companies are commonly used for asset protection for business owners and real estate investors. In addition, Domestic Asset Protection Trusts are sometimes used.
Your Revocable Living Trust creates a powerful value and can be drafted to provide asset protection for your loved ones. If you have questions about asset protection planning, feel free to give us a call. We can review your existing plan and determine what additional steps need to be taken to ensure you and your family have a secure financial future.