There are some assumptions made about trusts that are not entirely accurate, so you should certainly discuss the facts with a licensed estate planning attorney so that you can be appropriately prepared.
One misconception that circulates is the idea that you are completely separating assets from your possession when you convey them into any type of trust. This can lead to the belief that assets in a trust would be protected if you were to become the target of a lawsuit.
In fact, this is not entirely true. It would depend on the type of trust.
Revocable Living Trusts
Many people use revocable living trusts, and you do not have to be wealthy to realize the benefits. If you establish this type of trust, you have the power of revocation as the name would suggest. If you ever want to do so, you can revoke the trust, and it would no longer exist.
The trustee is the person who manages the trust. You can act as the trustee while you are living, so you maintain control of the assets, and you can act as the beneficiary at first as well.
You may feel comfortable conveying assets into this type of trust, because you maintain control. However, because you are still in control of the assets, they would not be protected from lawsuits.
Irrevocable Asset Protection Trusts
In addition to revocable living trusts, there are also trusts that you cannot revoke or dissolve. You surrender incidents of ownership when you establish this type of trust, because you cannot change your mind and take back direct personal possession of the property.
Since you surrender incidents of ownership when you establish an irrevocable trust, there are irrevocable trusts that are used by people who want to protect assets from potential legal actions.
Learn More About Asset Protection
If you are concerned about asset protection, we have a valuable resource that you can access through this website. An asset protection trust can be an option, but it is not the only way that you can keep your resources out of harm’s way.
Our firm has prepared an in-depth special report on asset protection, and you can obtain access to your copy quickly and easily through this website. The report is free, so there are no risks involved.
To obtain your copy of the special report, visit this page and follow the simple instructions: Free Asset Protection Report.
Take Direct Action
We would be glad to help if you would like to discuss asset protection strategies with a licensed professional. Our firm offers free consultations, and we can answer all of your questions and help you devise a plan if you decide to proceed.
Click this link to send us a message requesting a consultation: Los Angeles CA Asset Protection Attorneys.
To Schedule a Free Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney: www.collinslawgroup.com/seminars/