Does a trust protect one’s assets against judgment?
- October 20, 2021
- David Greene
- Comments Off on Does a trust protect one’s assets against judgment?
Whether or not assets in a trust are protected from judgment creditors depends on the kind of trust. The most popular trust is the Revocable Living Trust. Usually, the maker of the trust is also the trustee, so he retains a great deal of control over the assets. This trust keeps your assets from going through probate but it does not protect against judgment creditors since it can be revoked. If you owe a creditor money, the judge will simply order you to revoke the trust and pay the money. Therefore, it achieves the goal of avoiding probate but not avoiding creditors. In my next blog I’ll discuss the solution to the problem.