Everyone who creates an estate plan wants to find a way to protect their assets from lawsuits and collections, ensuring that they and their loved ones will be able to enjoy those assets as needed throughout the years. In your own pursuit of finding a way to stop lawsuits against your assets, you likely have heard that a revocable living trust will do just that. Is this true?
No. A revocable trust does not protect the assets within it from lawsuits. It might create some legal protections for assets you want to give to your loved ones, but it will do little to shield your own assets.
What are the Benefits of a Revocable Trust?
If a revocable living trust will not place a legal safe house around all the assets in it, then why should you make one? The truth is revocable trusts are still valuable parts of many estate plans when they are used correctly.
The advantages of a revocable trust include:
- Still protects most assets you designate for your spouse or children.
- Outlines how people should act on your behalf when you are incapacitated and can’t act for yourself anymore.
- Highly reduces the chances of your assets being tied up in probate after you pass away.
- Keeps key details of your estate plan and assets private.
Is It Possible to Protect Assets with a Trust?
Estate planning is a field of law that is as varied as it is useful. You may have plenty of legal tools from which to choose to properly protect your assets from collections, lawsuits, and the like. For example, if you are the owner or head of a limited liability company (LLC), you can tie certain assets to the company, effectively covering them from lawsuits. There may even be the option for you to utilize a domestic asset protection trust, depending on the value, extent, and type of assets you control.
Addressing All Your Estate Planning Concerns
Making the right estate plan is crucial but, as it can be seen just from the complications inherent in a revocable trust, it is seldom easy. To make certain the steps you are taking to protect your assets, yourself, and your loved ones, come to Legacy Law Centers in Leesburg, Virginia. Attorney Sam Mansoor would be happy to review your assets, discuss your goals for the future, and get to work on creating a comprehensive estate plan that works for you.