Trust Protection

How does a trust protect my assets from creditors and lawsuits?

A properly structured trust can shield assets from creditors because the assets are legally owned by the trust, not by you personally. This means creditors generally cannot reach trust assets to satisfy your personal debts or lawsuit judgments. However, protection varies by trust type - revocable trusts offer limited creditor protection during your lifetime, while irrevocable trusts typically provide stronger protection since you give up control of the assets. The level of protection also depends on your state's laws and how the trust is structured and funded.