Most people believe a living trust protects them. It doesn’t. A revocable trust transfers assets at death — it offers zero protection from creditors, judgments, or litigation. This article breaks down exactly what separates a revocable trust from a true irrevocable structure, why domestic asset protection trusts have failed in court six times in the last fifteen years, and what a court-defensible structure actually looks like.
Michael moved assets to family members and funded a trust in six weeks after a $4.2 million verdict. His attorney called it asset protection. The plaintiff’s attorney called it a fraudulent transfer. The court agreed with the plaintiff.
SEC vs Solow case review. Proactively structuring your assets can be beneficial, but if done in haste or with the wrong intentions, it can lead to unintended consequences.
Why equity stripping and friendly liens does not work as a form of asset protection.
The landmark Anderson case - Federal Trade Commission v. Affordable Media, LLC (9th Cir. 1999)
Battley vs Mortensen case review. The initial knock down blow to the DAPT.