A Revocable Living Trust is a popular alternative to a basic Last Will and Testament. A Living Trust offers a few more benefits than a Will, including circumvention of probate and privacy for you and your heirs. There is one benefit, however, that Wills and Living Trusts do not provide: asset protection. Assets in your Living Trust have absolutely no protection from potential creditors.
At any time you can fund items into your Trust and remove them. Unlike an Irrevocable Trust, items within your Trust remain completely in your control and are considered part of your legal estate. For this reason, your assets can be taken out at any time to settle a judgement against you.
Without additional planning, once you pass away, your heirs will also have the potential to lose the Trust funds that they inherit to their own debts, divorcing spouses or lawsuits.
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