revocable, revocable trust

Are Assets Moved To A Revocable Trust Protected From Creditors?

There are many different myths out there about how trusts can be used in the estate planning process, and it is very important to educate yourself as well as to work with a qualified estate planning attorney. A knowledgeable estate planning attorney can tell you a lot more about how this process works and how best to use a revocable trust as part of your estate plan.revocable, revocable trust

It is also important to identify whether or not a revocable trust is the right tool for your estate planning goals and this can only be accomplished by communicating directly with an experienced and dedicated attorney. A lawyer can tell you more about how best to use a revocable living trust and can assist you with determining your next steps in these situations. If you transfer your assets to a revocable trust, you still maintain control over those assets.

This means that assets inside a revocable trust typically receive no protection from creditors. There are, however, certain kinds of irrevocable trusts that can be created under the laws in specific states that do provide protection from creditors. But even these asset protection trusts may not protect the assets from creditors whose claims exist or come about before the creation of the asset protection trust. Since this is a very specialized area of the law, you should work directly with a qualified and experienced attorney to help you with this process.

A New Hampshire or Maine estate planning lawyer familiar with trusts can assist you with your own personal strategy so that you can make informed decisions about your future.



How to Keep Your Estate Plan Up to Date

Have you already done the work of sitting down with an estate planning attorney in your area and pulling together these important documents? Congratulations, because you’ve done more than most people when it comes to their estate plan.

But the truth is that your work doesn’t stop here. Establishing the initial estate plan is only half of the process. Your estate plan should evolve over the course of your life much like other areas of financial planning.

Your wishes, beneficiaries and assets can all change over time so a regular review of your estate plan and updates around certain life events can be very beneficial. Life events in which it is worth looking at your existing strategy include:

  • The adoption or birth of a grandchild or child.
  • A change in circumstance for the named guardian of your minor children or the death of this person.
  • Divorce or marriage.
  • When a grandchild or child reaches the age of maturity.
  • State or federal tax law updates that impact your investments and taxation rate.
  • The passing away or sudden disability of a beneficiary.
  • If you experience a career change or start or close a business.
  • The purchase of a major asset, such as a home.

For more information about how estate planning can be used to help accomplish your goals, set aside time to meet with an estate planning law firm in your area. Our NH law office is here to guide you through the establishment of your estate plan, no matter what that looks like for you.