Blog Post
Do Revocable Trusts Protect Assets From Creditors?
By John Tamboer
July 3, 2023
Answer: The person who creates a trust is a called a "settlor". During the lifetime of the settlor, the property of a revocable trust is subject to the claims of the settlor's creditors. In addition, after the death of the settlor, the property of his or her trust is subject to the claims and expenses of the settlor's estate.
In summary, revocable trusts do not
provide any protection for the settlor with respect to the claims of his or her creditors.
Reference: MCL 700.7506
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