Mark Kohler debunks the myth that putting a boat in a living trust exposes other assets to liability. A lawsuit from a boat accident reaches the owner's assets whether the trust holds it or you do. Trusts handle estate planning and probate, not asset protection.
I've got some haters that are saying, whoa, whoa, whoa, Mark, you don't want to put the boat— staying with that example— in the trust name. If anything goes wrong with the boat, all the assets in the trust are now at risk. You just exposed all the assets of the trust because now you've got this boat in the trust. And so, oh, all the liability of all the assets in the trust are now at risk. Uh, people, this trust does not give you any asset protection anyway, whether it's in the trust or not. And the boat freaking runs over someone that was water skiing and hold up the little orange flag— you got to hold up the little orange flag— you don't want that liability. But if it were to happen, you're going to get gets sued anyway, whether it's in the trust or not. A trust is not for asset protection.
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