Does my Revocable Living Trust Offer Creditor Protection?

A revocable living trust is an excellent tool for avoiding probate, and ensuring a smooth distribution to your beneficiaries after your death. However, it does not provide asset protection from lawsuits or creditors during your lifetime. Because the trust is “revocable,” you retain full control over the assets in the trust—you can amend it, revoke it, and use the assets as you wish. For that reason, the law treats those assets as still belonging to you personally, which means they remain accessible to your creditors in the same way as assets held in your individual name.