Does a living trust provide creditor protection?
Holding assets in a revocable trust doesn’t shelter them from creditors because you still have control over the assets. A creditor who wins a lawsuit against you can go after the trust property just as if you still owned it in your own name. Can a living trust reduce estate taxes? A simple probate-avoidance living trust does not reduce estate taxes. However, this issue is not relevant to most estates because California does not have an inheritance tax and the federal estate tax exemption per person is $3.5 million. For clients who may exceed the exemption amount, there are other trust options that can greatly reduce the federal estate tax bill. How do I set up a living trust? A trust document is drafted to name the trustor(s), trustee(s), successor trustee(s), beneficiaries and outline the trustee’s powers and distribution plan for all trust assets. The trustor is the creator of the trust and the trustee is the manager of the trust. You usually serve initially as trustee and nominate a
