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 it is possible to provide asset protection to your beneficiaries by working with a qualified estate planning attorney while designing your estate plan to create a trust for your beneficiaries, very few trusts protect assets that are owned by the person who created the trust.
No Immediate Asset Protection? Why Should You Create a Revocable Living Trust?
Fully funded Revocable Living Trusts are excellent tools for many reasons. Here’s a few of the reasons:
- 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, there are advanced concepts to protect your assets during your life once your foundational plan is in place.
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 give me a call at (858) 432-3923. I can review your existing plan and help you determine if there are holes or gaps in your plan that need to be addressed. I can help you determine what additional steps are needed to ensure you and your family have a secure financial future.