Video Summary
Does a trust protect my real estate from creditors? I’ve heard from any number of people saying, “Oh, well, he put his property in his trust so the creditors could not reach them.” Well, this is a myth. If you have a revocable trust and you transfer your assets into your revocable trust, it does not protect them from creditors and creditors can reach them just as if you owned it in your individual name. So, by doing that, you haven’t accomplished anything. I suggest if you’re concerned about liability as far as, let’s say, a rental property, then I suggest that you get liability insurance or what you call an umbrella policy to protect you against any potential suits by tenants.
If you’re concerned about creditors reaching your property as a result of an automobile accident or something like that, an umbrella policy would also be the answer. Now, anytime the property has a secured lien, such as a mortgage, well, they’re able to foreclose the property no matter who owns the property and the lean take priority over any subsequent advances.
So, if you want to protect your property from creditors, give me a call at (727) 847-2288 and we’ll be glad to talk to you about how to protect your property from creditor’s claims.