Mark Kohler explains why irrevocable self-settled trusts fail at asset protection. The grantor keeps ownership, so creditors can still reach the assets. Real asset-protection trusts require you to give up control entirely.
A lot of people that ask that question going, oh, I'm worth $4 million. Should I do this irrevocable trust or self settled trust, or would that be of benefit to me? I don't have one. I can set one up tomorrow. I've written on them, read about them, studied them, been to school on them, have copies of irrevocable self settled Trust in front of me right here. Hell no. What I do, and I wouldn't even do one if I was worth $14 million. Here's the problem. A lot of trusts have baggage. If they truly are built for asset protection, that means you have cut ties with it. And it's not a defective trust or a grantor trust. You've l literally put those assets over there, and if someone sues you, they can't get at them because you don't own them anymore.
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