Sanders & Sanders, Attorneys at Law
How Irrevocable Trusts Protect Assets from Creditors
An irrevocable trust protects assets from creditors by moving them out of your name and into a trust you cannot revoke or control. Because you no longer own the property, a creditor who wins a judgment against you generally cannot pursue or seize it. If the trust also includes a spendthrift clause and gives the trustee discretion over distributions, a beneficiary's creditors usually cannot reach the assets before they are paid out.