Does Putting Assets in a Trust Protect Them From Lawsuits?

Why It Matters

Improperly formed trusts give a false sense of security, leaving assets vulnerable to creditors and jeopardizing estate‑planning goals.

Key Takeaways

• Revocable trusts do NOT shield assets from creditor claims.
• Irrevocable non‑grantor trusts can provide genuine asset protection.
• Proper legal formalities are essential for trust protection to hold.
• Retaining control over trust assets may expose them to lawsuits.
• Most DIY trusts fail due to inadequate structuring and documentation.

Summary

The video examines whether placing assets in a trust shields them from lawsuits, emphasizing that the answer hinges on the type of trust and strict adherence to legal formalities.

It explains that revocable (grantor) trusts offer no real protection because creditors can reach assets that remain under the settlor’s control. By contrast, irrevocable non‑grantor trusts can provide genuine asset protection, but only when they are properly structured, funded, and administered without the settlor retaining direct control.

The presenter notes that roughly 98% of trusts he encounters are poorly executed, often driven by social‑media myths that a trust automatically blocks creditors. He cites examples of individuals who create trusts yet continue to move assets around, effectively nullifying any protective benefit.

The takeaway for investors and estate planners is clear: professional guidance and meticulous compliance are essential. Mis‑structured trusts can expose assets to litigation, undermining the very purpose of the arrangement.

Original Description

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ABOUT JASMINE DILUCCI, JD, CPA, EA

Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.

Now as a tax attorney and CPA, she works with individuals and business owners across the nation to on Tax Planning, CFO Advisory, and IRS Tax Resolution

How Jasmine Got Here…

18: Became an Enrolled Agent, licensed to represent taxpayers before the IRS.

22: Earned an Accounting Degree and a Master’s in Finance.

23: Became a CPA

24: Stepped into leadership as she took over her own CPA firm

26-28: Juggled full-time studies at SMU Law while she was growing her CPA firm.

28: Graduated from law school 4th in her class and became an Attorney, all while managing her CPA firm.

29-31: Expanded her CPA firm to seven figures, with a focus on delivering top-notch service and exceptional value to every client.

32: Launched Tax Leverage to offer free online education and combat the rise of “tax gurus,” aiming to provide real, accessible tax knowledge.

Today: She’s dedicated to running her firm and leveraging her expertise to educate and empower others, helping individuals and businesses navigate the complexities of taxes and finance.

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Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.

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