Adding or taking out assets, selling or giving away, changing beneficiaries, or spending are all actions you have control over as part of a living trust

The assets inside of a living trust remain yours until your death. The main reason for this type of trust is to eliminate the probate process and ensure your beneficiaries see a smooth transaction of assets. However, since you still own all of the items in the trust, they are up for grabs from debt collectors, plaintiffs, and others who have legal access to your accounts.

The Benefits of Placing Your Assets in an Irrevocable/Asset Protection Trust

An irrevocable trust is accurately titled. It is irrevocable. Once you put assets into the trust, you cannot take it out and you do not have control over what happens to those assets. At its creation, you name someone else to act as a trustee. They will oversee the assets in the trust and there is nothing that you, the past owner of those assets, can do if the trustee does something with the assets you do not like. There is no taking back an irrevocable trust unless you use a trust protector.

You Have Control Over What You Put in the Trust

Assets that you want protected are the best to put in an irrevocable trust. Your home, inherited treasures, and other important assets will be safe from Medicaid, creditors, and legal action.

Other Parties Cannot Gain Access to Your Assets

Assets inside an irrevocable trust are no longer under your control. The lack of control makes it difficult for creditors or those that file suit to gain access to the assets under the trust. There are also ways to take other steps to make additional protections for the assets in the trust. A catch, however, is that if you are already under a lawsuit, you may not be able to put your assets into an irrevocable trust.