A revocable living trust is a legal instrument that includes instructions as to what will happen to assets upon the settlor’s death. It is similar to a will in this regard, however unlike a will, a living trust avoids the lengthy probate process and expensive fees at death. It also prevents the court from controlling your assets if you become incapacitated. In addition, it gives the settlor (not the courts) control of the assets left to others, such as minor children or grand children.
Settlors of living trusts control the assets encumbered and can continue to buy, sell, mortgage, etc. just like before. Living Trusts can canceled at any time and does not, in itself, provide asset protection, however it does avoid probate and allows the settlor to stay in control. There are a few tricks that will enable a living trust to provide some semblance of asset protection, however there are stronger options available for personal asset protection.