(Note: Originally published on October 6, 2014)
The Trust Protection Myth: Your Revocable Trust Protects Against Lawsuits
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 nottrue.
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 Trusts are dynamite tools. Here’s why:
- You can protect assets passing to your spouse and children. Yes, you can provide protections for loved ones that they can’t yet for themselves.
- Your Trust includes an incapacity plan, avoiding court interference, maintaining your control, and saving your loved ones time, money, and stress.
- Your Trust allows your assets to avoid probate, minimizing the time, stress, and cost of settling your final affairs.
- By avoiding the public probate court process, your Trust keeps all details about who is getting what, a private family matter.
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.
We Are Trusted.
ILP + The Book
It is possible to protect yourself, your family and your business or professional practice from the real threats that keep you up at night. The law provides more and better solutions than ever before in history. In this book, Stan explains in clear, understandable language how these powerful solutions can be deployed to protect what you have earned and built.
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ILP + The Webinar
In this 9 minute webinar, Stan explains how to avoid probate and protect your heirs with a revocable living trust. You will learn how to protect your loved ones what many consider to be an expensive, lengthy, and unnecessary court process. You will also learn what a living trust is and why having a living trust will protect your children, grandchildren and other heirs.