How can one protect assets held in trust from creditors?
- David Greene
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In my last blog I stated that a revocable trust will not protect against creditors. However, there is a solution: the Irrevocable Trust. In this trust, the maker of the trust generally cannot be the trustee, so a great deal of control is removed from the maker. As the name implies, it cannot be revoked on the whim of the maker. This affords great protection for the maker against judgment by his creditors because the trust will have language prohibiting distributions from the trust for payment of judgments, etc. I have recently been utilizing a new irrevocable trust that accomplishes this benefit but also gives more control to the maker.