Skip to main content

Will putting my home in a Living Trust protect me if I ever got sued? What other actions should I take for LLC company?

90049 |

Living Trust protect my home

Attorney Answers 4


  1. No. A living trust generally does not protect against lawsuits. In some cases, irrevocable trusts do this. You need to share your facts with an attorney to make sure that things are set up properly and that you do not have any fraudulent conveyance issues.

    If your company is already set up as an LLC, your liability is limited to the LLC assets, just by virtue of being within the LLC.

    Insurance may be a good way to take care of this issue, depending on what the concerns are.

    James Frederick

    ***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!


  2. No - a revocable living trust does not protect your assets if you are sued. If you have formed an LLC for a business (including rental real estate) an LLC is designed to protect your other assets if you are sued as a result of the business owned by the LLC.


  3. I agree completely with Mr. Frederick: Putting your assets into a revocable living trust -- one in which you have complete and utter control over the assets -- will not protect these assets from creditors.

    99% of the law follows common sense: Would it be fair for someone to avoid their creditors by simply transferring their assets into a revocable trust that they still control and get the benefit from? No, it wouldn't, and consequently the law doesn't allow for it.


  4. A living trust provides no creditor protection. In California an irrevocable trust in which the settlor is also the beneficiary likewise does not provide protection.

    What is your question on an LLC? What assets are you putting into the LLC? What is the purpose?

    The general advice above does not constitute an attorney-client relationship: you haven't hired me or my firm or given me confidential information by posting on this public forum, and my answer on this public forum does not constitute attorney-client advice. IRS Circular 230 Disclosure: In order to comply with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. While I am licensed to practice in New York and California, I do not actively practice in New York. Regardless, nothing said should be deemed an opinion of law of any state. All readers need to do their own research or pay an attorney for a legal opinion if one is necessary or desired.

Wills and estates topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics