• Skip to primary navigation
  • Skip to main content

Duffy Law Office, PLLC

Helping Families Preserve Their Wealth

  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Speaker Connection
  • Services
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
  • Reports
    • Advanced Estate Planning
    • Basic Estate Planning
    • Estate Planning For Niches
    • Trust Administration
  • Resources
    • Client Resources
    • Consumer Resources
    • Published Books
  • BLOG
  • Contact Us
  • (563) 445-7400
  • Show Search
Hide Search

Does a Revocable Living Trust Provide Asset Protection in Iowa?

Dennis D. Duffy · Aug 19, 2013 ·

There are websites on the Internet that sell do-it-yourself estate planning documents. You may purchase one of these documents and fill in the blanks thinking that you have successfully planned your estate.

However, as a layperson you may be assuming that the document is satisfying certain objectives. Your assumptions may be mistaken, and as a result you and/or your family may ultimately wind up paying a heavy price.

Revocable Living Trusts

One of the simpler types of trusts to create is a revocable living trust. Many people use these trusts to arrange for future transfers of assets to loved ones.

The main reason why you would want to create a revocable living trust is to avoid probate. Probate is a legal process that must run its course after someone dies using a last will to direct asset transfers.

The property in your personal possession at the time of your death would be considered probate property. It cannot be distributed to the heirs that you name in your will until the probate court has closed the estate.

The process of probate is a public proceeding, so anyone who is interested could look at the probate records to see what took place. Many people would prefer that their final affairs remain private, and this is one reason why probate is often avoided.

The costs involved are another consideration. When you create a last will you name an executor to administer the estate. This person is entitled to payment, and the court itself charges a fee. Various different professionals will be engaged by the executor in most cases, and they too must be paid.

All of this takes a lot of time, so the three reasons why probate is often avoided through the creation of a revocable living trust would be to save time, to save money, and to ensure privacy.

No Asset Protection With Revocable Living Trusts

Because you are taking personal property and placing it into a trust you may assume that creditors and claimants can’t seek to attach funds that you have conveyed into a revocable living trust. This is a mistaken assumption.

The key word here is “revocable.” Because the trust is revocable you can dissolve it at any time and go forward with the money as you wish. You could take it to Las Vegas, purchase a yacht, give it to charity, or use it to start a business.

You would also be perfectly capable of using it to pay debts or judgments against you.

As the grantor of a revocable living trust you have total access to the funds, so they are not protected from attachment.

That does not mean that you have no recourse. There are other steps that could be taken to position assets safely. If you would like to become apprised of your options simply contact our office to set up a free consultation.

We are grateful you follow us and value your comments and input. You Can Also Find Us Online: Facebook | Twitter | LinkedInThanks again.

Ryan M. DenmanandDennis D. Duffy

Duffy Law Office, PLLC

  • Author
  • Recent Posts
Dennis D. Duffy
Latest posts by Dennis D. Duffy (see all)
  • Attorneys Want to Help - December 14, 2016
  • Trusts and the Estate Tax - December 14, 2016
  • What Is a Third Party Special Needs Trust? - December 14, 2016

Advanced Estate Planning, Asset Protection, Estate Planning, Trusts, Wills

Blog Subscription

Where we are

Duffy Law Office, PLLC
1840 E 54th St
Davenport, IA 52807
United States (US)
Phone: (563) 445-7400

Opening hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM

Map

duffy_hmpg_map.png

© 2023 · American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy | Sitemap | Contact Us