Is Revocable Trust Protecting Your Assets?

Everyone should be concerned with asset protection, which involves taking legal steps to keep assets safe from creditors or civil judgments against you. It is especially important for the wealthy as they have more assets at risk and could be more frequent targets of large lawsuits. Unfortunately, in my experience, people tend to confuse certain tools used for estate planning — which is the process of determining what will happen with your assets when you die — with asset-protection tools. That can lead to large gaps in asset protection. The most commonly misunderstood tool is the revocable living trust.

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