But how can you ever be absolutely certain of this?
It’s more accurate to say that you shouldn’t transfer assets to an irrevocable trust if you have the likelihood of a present creditor.
Since you cannot revoke or change an irrevocable trust, your creditors have no greater power to unwind your trust and reclaim its assets.
Now folks from every economic background use trusts for myriad purposes. During your lifetime, your assets remain in your name and would be unprotected against your creditors, unless they have otherwise been sheltered. America’s wealthiest families have historically relied upon various trusts to protect their wealth from taxes. You would usually create it in your last will or living trust.That’s why an irrevocable intervivos trust is seldom used for protection − though such trusts can be useful for estate planning.revocable trust will not protect your assets because your creditors can step into your shoes and revoke your trust.For example, assets titled to your revocable living trust are vulnerable to your present and future lawsuits.
It is important to distinguish a revocable from an irrevocable trust because a revocable trust won’t protect you. You also need an irrevocable trust that you presently fund − an intervivos trust.irrevocable intervivos trust for protection is that once you establish and fund the trust, you cannot cancel or modify it and reclaim property you transferred to it.
You thus lose both ownership and control over the trust assets.