Indiana Estate Planning Attorney Shawn Williams and a client

Can I Create a Trust to Protect My Assets From Creditors?

Indiana Estate Planning Attorney Shawn Williams and a client

It depends. Revocable (or “living”) trusts do not offer any protection against creditors. Similarly, if you are in debt (or believe that you are about to be in debt), you cannot transfer your assets into a trust and simply avoid creditors.

Irrevocable trusts usually will be outside the reach of creditors, provided that the initial asset transfer into the trust was not done while the person was in debt or for the purpose of evading current creditors.

If you are contemplating a transfer of one or more assets into any type of trust, you should always seek the guidance of an experienced trust attorney.