An irrevocable trust can shield assets from IRS levies and creditors because the IRS typically can't seize property you no longer legally own. The tradeoff: you lose control of the money and property inside it. Revocable trusts don't offer this protection.
If you're looking for IRS protection on money and property, as well as lawsuit and creditor protection, you may want to look into an irrevocable trust. The IRS generally does not consider assets in an irrevocable trust to be owned by the taxpayer. This rule generally prohibits the IRS from levying any assets that you place into an irrevocable trust, because from their standpoint, you no longer own those assets. Now, the details of this go way beyond the scope of this video, and the law differs from state to state, but you should know that you can protect assets from the reach of third parties through the use of some types of irrevocable trusts, including the IRS. What's the downside? You lose control of the assets because they're no longer considered yours. A revocable trust in most situations does not provide this kind of protection, only irrevocable. Subscribe to my newsletter in my profile, L-I-N-K, and you will learn more about this and other captivating topics.
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