Does a Trust protect your assets from the IRS

23 Oct 2023 · 1 min

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Jerry Taylor explains that revocable trusts don't shield assets from the IRS since you keep control, but irrevocable trusts transfer ownership to the trust and generally protect assets. One catch: if the IRS already has a lien on an asset, moving it to an irrevocable trust won't help.

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And the question is, does a trust protect your assets from the IRS? Here's the answer. There are two types of trust: revocable and irrevocable, or irrevocable. If it's a revocable trust, you have total control over that. And because you have total control, the IRS and other creditors for that matter can come after the assets in that trust. So what about an irrevocable or irrevocable trust? Usually when you put your assets in that type of trust, you are totally disassociating yourself from the asset. You no longer own it, the trust owns it. And because you no longer own the assets in that trust, the IRS will not touch them generally. But if you already have an IRS lien against you when you put the asset in that trust, you could have problems. Now click my picture and the Linktree to work with me and get my newsletter.