That would be wrong, Edgar.
The black letter law in the United States is simple. If you jam your assets into a trust AFTER creditors come into existence, the trust won't protect your assets from creditors who extended credit before the trust came into existence.
And the story gets worse.
So you put all your assets into a trust, INCLUDING YOUR HOUSE.
Your homestead doesn't exist any more, as a homestead. In Arizona, a PERSON is entitled to a homestead exemption in or out of a Chapter 7 or Chapter 13 or Chapter 11 or Chapter 12 bankruptcy.
But a trust isn't so entitled. Nor a corporation, nor a partnership.
So if you put your house into a trust and then file a bankruptcy, you're in deep kimchi.
A similar result should obtain as to the rest of your assets.
Are there circumstances where a trust can be a useful asset-protection device, as well as an estate-planning and tax-planning device?
Sure.
And to learn that stuff, you go to a board-certified trust attorney who has an av rating from Martindale and an AVVO 10 rating.
