MYTH! Many people believe that once they set up a Revocable Living Trust and transfer assets into the trust, those assets are protected from lawsuits. This is absolutely not true.
While Trusts commonly provide asset protection for beneficiaries, only irrevocable trusts protect assets owned by the person who created the trust.
You may ask yourself, “Well if there is no immediate asset protection why should I create a Revocable Living Trust?
Fully funded Revocable Living Trusts are excellent tools, and here are a few reasons why:
- You can protect assets passing to your spouse and children, providing protection for loved ones that they can’t put in place for themselves.
- Your trust includes a plan for managing your assets during any times of incapacity, avoiding court interference, maintaining your control, and saving your loved ones time, money, and stress.
- Your properly funded 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, all details about who is getting what remain 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 insurance, disability, and the like. Business entities such as Limited Liability Companies are commonly used for asset protection for business owners and real estate investors. In addition, Domestic Asset Protection Trusts are sometimes used.
Your Revocable Living Trust creates a powerful value and can be drafted to provide asset protection for your loved ones. If you have questions about asset protection planning, feel free to call Flagship Law PLLC at (813) 253-2853. We can review your existing plan and determine what additional steps need to be taken to ensure you and your family have a secure financial future.