One of the most crucial issues to consider when putting together an asset protection plan or an estate planning strategy is whether or not the use of a trust is still appropriate. Protection of assets for young beneficiaries is one of the leading reasons why a person may consider using a trust.
Many beneficiaries may not be capable of handling extreme sums of money in a mature manner but trusts can also be beneficial for the purposes of asset protection. A future creditor will not be able to satisfy a judgment against the assets held in an irrevocable trust.
A revocable living trust, however, does not provide these same benefits since it does not protect your assets from creditors. A revocable living trust based on its very foundational terms can always be terminated or changed at any time. An irrevocable trust may be a greater way to add privacy to your estate planning goals and ensure that your assets are protected from creditors in the future while also giving you greater control over how the funds are distributed.
The right trust for you will depend on a lot of individual factors, but you should always be prepared to talk it over with an attorney so you know what to expect.
