The answer is yes. Revocable living trusts are used by millions of people to transfer property to their beneficiaries upon their death and to keep their assets from going through probate. In general, however, they provide no asset protection benefits when it comes to creditors. As part of an asset protection service, living trusts enable you to manage your assets and control what happens to them when your days on this earth are through.

A revocable living trust is a legal document that includes your instructions as to what will happen to your assets when you die. It is similar to a will in this regard, however, unlike a will a living trust avoids the lengthy probate process and expensive fees at death. It also prevents the court from controlling your assets if you become incapacitated.<!–more–>

In addition, it gives you (not the courts) control of the assets you leave to others, such as your minor children or grand children. You do not lose control of your assets when you put them into a typical living trust. You can continue to buy, sell, mortgage, etc. just like before. You can cancel the trust at any time.

There are a few tricks that will enable your trust to provide some semblance of asset protection. Now it is true that a revocable living trust does not give absolute trust asset protection from creditors, but it is much better than only having Wills. Most people with Wills continue to own their property jointly.

Jointly owned property, unless exempted from creditor claims by the laws of your state, will be available to the creditors of either spouse. If you have a revocable living trust to hold your property you can segregate property in one trust or the other. It also avoids probate and allows you to keep control.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.