I am a single parent, looking to setup a revocable living trust to hold my checking account, real estate, auto, jewelry, etc). I am both the Settlor ( grantor) AND the Trustee, are the Trust's assets safe from potential creditors of mine? Or must I be the Settler and someone else as Trustee? Please advise. Thank you, Juhl.
A revocable living trust does not protect the assets in the trust from would be creditors. The main reason for this is because, by its very nature, you are able to modify and / or terminate the trust agreement at any time. Further, the law doesn't really look at the assets held in a revocable trust as being owned by a different entity.
That said, the assets held in an irrevocable trust usually will be protected from potential creditors - but at a host of restrictions and requirements that may not work in your particular situation.
Moving assets with the intent of hiding from creditors can have serious legal ramifications depending on the current situation. In all cases, a discussion with an attorney who works in this area is always in your best interest.
You are advised that any answers provided here are intended for informational purposes only, and as such do not create an attorney-client relationship and are not to be construed as providing legal advice.
The old maxim is "your creditors stand in your shoes". Since you have full use, enjoyment, control, & management of assets held in your revocable trust, so too, do your creditors. Revocable living trusts are normally established for creating a distribution plan for your family following your death, avoiding court controlled guardianship and probate, and if your estate is large enough, for avoiding/reducing death taxes. It is not created to protect your assets from your creditors.
Our Rating is calculated using information the lawyer has included on their profile in addition to the information we collect from state bar associations and other organizations that license legal professionals. Attorneys who claim their profiles and provide Avvo with more information tend to have a higher rating than those who do not.What determines Avvo Rating?Experience & background
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline