DOESN’T A LIVING REVOCABLE TRUST PROTECT MY ASSETS?
No. The entity commonly known as a “living trust”, “revocable trust”, “loving trust”, etc. can accomplish disability and estate planning goals and help avoid probate. However, such planning affords no protection from the creditors of the person creating the trust. All states have laws designed to prevent you from not paying a creditor. If you have one of these trusts, a judge simply orders you to revoke the trust and pay the creditor.
