Becky Cholewka: There is another myth I want to share with everyone that I hear all the time in my office. I get people in here that say, “You know what Becky, I really want to have a revocable trust, because if I get in a car accident and get sued, I don’t want them to be able to touch me.” Unfortunately, that is not the case at all.
When you have a revocable type of trust, you still have full control over all of your money. Because you still have full control over your money, your creditors don’t care if you are holding your money in your right hand and the name of you, yourself, as an individual, or if you’re holding your money in your left hand, you as trustee of your trust. They are still going to be able to reach it.
The type of trust you’re talking about is actually an irrevocable type of plan where you give up full control over your money. That’s where asset protection comes into play. When you have your own revocable trust, there is not asset protection for you while you are alive.
If asset protection is one of your goals to protect your family, call our office today at 480-497-3770 to set up a consultation so we can walk through your goals and the estate planning options available to you.