Many people have the impression that a Revocable Living Trust provides them with asset protection, but this generally is not the case. Because you have total access and control over a Revocable Living Trust--including the power to amend, modify, terminate, and revoke the trust entirely, the assets are potentially accessible by lawsuits and creditors and the assets are also countable for purposes of government benefits such as Medicaid or veteran's benefits for long-term care.
Some of the confusion may stem from discussions that a Revocable Living Trust may contain provisions to provide asset protection to your surviving spouse and children or beneficiaries...but this protection does not start until after your death. To learn more about this type of planning, check out our free guide, Estate Planning Pitfalls: The 12 Most Common Threats to Your Estate & Your Family's Future.
If you are interested in learning more about Asset Protection Planning, be sure to read our article series on Asset Protection Planning or call our office at 919-443-3035 to discuss the best way to get started.
Asset Protection Planning Series: