Asset protection and minimization of financial risk are important estate planning topics addressed by many in California. Included in many plans are revocable trusts, which some consider a means of asset protection, while others say this is not the case. Because such matters can be complicated, they are often best addressed through knowledgeable counsel.
Revocable trusts have been compared to a holding container that keeps assets secure while an estate owner is still alive. Assets held in trust may be added to or removed at will. One of the potential benefits of holding assets in trust is that the assets are not subject to probate.
Trust-held assets are not, however, safe from civil judgments or creditors. In fact, some financial advisers say the only means to protect assets from lawsuits or creditors is liability insurance. Customizing one's estate plan to suit individual needs and long-term goals is a personal matter. Include trusts, a will, advanced medical directives or other documents is an individual decision.
If a person in California is confused about what may be the best plan to protect assets and provide for loved ones in the future, a probate and estate administration attorney can be contacted to arrange a consultation. Discussing trusts and other such issues with an experienced attorney often helps clarify certain issues and simplify the process of creating a thorough plan. A seasoned estate attorney would be able to help an estate owner explore all available options and provide resources that assist in making informed decisions.
Source: marketwatch.com, "Why your revocable trust is not protecting your assets", Rachel Podnos, Aug. 12, 2016