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Estate Planning

Does transferring a property into a living trust protect me from creditors or lawsuits?

Does transferring property into a living trust protect me from folks who are trying to cause problems?

Unfortunately, transferring a property to a living trust does not protect you. One of the advantages of a living trust is that you can change it. The reason you can change it is because you’ve maintained full control.

So, unlike a corporation and an LLC, where there’s another entity that takes over a trust, while you’re alive the living trust is like a parachute. It doesn’t really have a lot of teeth until you become either incapacitated or you pass away.

It doesn’t protect you from creditors, unfortunately.