There are numerous reasons to consider using a revocable living trust. The cheap among these avoiding probate. However, be aware that it is not always guaranteed that you can keep your assets safe from creditors when using a living trust.
A revocable trust enables the trust creator or the grantor access to the assets inside during his or her lifetime. The successor trustee or the other person selected by the trust creator takes on the responsibilities of distribution of assets, based on the trust maker’s wishes when that creator passes away.
Remember, that what makes a revocable living trust unique is that the trust maker is typically considered the owner of the assets inside the trust and because it is revocable that the terms of the trust can be updated or cancelled at any time.
This means that assets inside the trust could still remain susceptible to collection by creditors without the support of an asset protection planning attorney because the way that the law views ownership of these assets is that the trust grantor still maintains full control.
The short answer is that a revocable living trust does not appropriately protect assets from creditors. However, an irrevocable trust might be beneficial for a person who wishes to maintain the privacy and is willing to give up the control of the ability to update the trust at a later point in time.
