Q: There is so much misleading information on joint and separate revocable trusts connecting to asset protection. Is there anyway you could clarify?
The bottom line is that a revocable trust does not provide any asset protection for the person who created it (the “settlor”). Because the trust is revocable, all assets in the trust can be taken back freely and at any time. It can also be enjoyed freely while in the trust. Thus, creditors can attach to the assets the same as if it was in held in the individual’s name.
The nice thing is both trusts are amendable and revocable so that the trust can be changed as your life situation changes.
