Does a trust provide protection from creditor claims?
In Florida, trust assets are not necessarily shielded from creditors’ claims. While living, assets in a revocable trust are basically treated as if they were owned by you. Therefore, creditors are able to make a claim against them essentially as if they were titled in your own name. If the assets remain in the trust after the death of the Grantor, the beneficiary’s interests may be safe from creditors due to a “spendthrift provision” written into the trust. Florida law allows special protection for many types of assets, including those owned by husband and wife. An attorney will advise you on which assets can be protected by from creditor claims and can effect the funding of a trust. An attorney will give these types of assets special consideration in deciding how to fund a trust.
