Skip to Content

We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. Please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!

Can a Revocable Trust Protect Your Assets from Catastrophic Medical Bills?

Posted on Mon Jul 29, 2019, on Revocable Trusts and Living Trusts

Can a Revocable Trust Protect Your Assets from Catastrophic Medical Bills? Catastrophic medical costs are a real worry that many Americans have. If you or your spouse becomes ill, you may be looking at thousands, if not hundreds of thousands of dollars’ worth of medical bills. If you cannot pay your bills, then collection agencies may start hounding you for payments. Hospitals may even take you to court and take legal action to receive the money that you owe them. When you do not want to give all of your wealth to a hospital or when you have money put away in a trust, you want to know that you are protecting it. If you have a living trust, can you protect it from creditors?

Can a Revocable Trust Protect Your Assets from Catastrophic Medical Bills

Can a Revocable Trust Protect Your Assets from Catastrophic Medical Bills?

What Is a Revocable Living Trust?

Often, people choose to have a living trust when you are planning your estate or writing your will. The purpose of a living will is to save your family from having to deal with probate when you die. When you have your assets in a living trust, you do not need probate court approval to pass on the inheritances. Living trusts also allow another person to step in if you are incapacitated to take care of your assets.

Can Creditors Touch Revocable Living Trusts?

Living trusts do not protect your assets from creditors. If someone has a claim against you, they can still access these assets. If you have catastrophic medical bills and the hospital files a claim to receive payment, then may still be in trouble. You are considered the owner of the trust assets. You are able to put property in your trust, sell it, take it out and give it away any time that you want. Since you have no restrictions, you cannot protect your assets from creditors. Can a Revocable Trust Protect Your Assets from Catastrophic Medical Bills? No.

Can You Protect Assets in a Trust?

Now, if you do want to protect your assets, you could always put your money in an irrevocable trust. Irrevocable trusts do not allow you to control the assets that you put in. Once in the trust, you are not the owner of it. This means that if a hospital files a lawsuit, you do not have to worry about them taking your assets.

Can a Revocable Trust Protect Your Assets from Catastrophic Medical Bills?

When it comes to catastrophic medical bills, it’s important that you can save your assets from creditors. Most people do not have the money available to pay such extreme medical bills. If you’re worried about creditors getting a hold of your assets, then consult with a trust administration lawyer in Schaumburg, IL today about your options.

To learn more, read the Klenklaw Article Revocable Living Trusts; Everything You Need to Know.

Thanks to Bott & Associates, Ltd. for their insight into estate planning and revocable trusts.

 

Tags:

Living Trust, Revocable Trust

Klenk LawKlenk Law

What Our clients are saying

Klenk Law Logo
Stars

A Google User

Peter is a model attorney who puts his clients first at all costs. His extensive expertise in estate planning and tax planning was a great comfort as we began, and have expanded, our family. He is very thoughtful, generous, and quick witted. His approach towards his business has been an inspiration to his peer group, and his zest for life is extremely infectious. Without reservation, I highly recommend Peter as trusted and cherished counsel

Klenk Law Logo
Stars

A.R.

Peter and his associates made things easy for us.

Klenk Law Logo
Stars

Ronald W.

Peter and his staff are very responsive and always willing to help my clients and in a cost efficient manner.

Klenk Law Logo
Stars

Bill

I met Peter soon after he started his practice in Philadelphia, PA. He and his team have always been there for me and my various inquiries throughout my life-changing events, corporate relocations. I have lived in various cities throughout the nation, I have never had a problem in contacting Peter or a member of his team. He and his office responds quickly and returns calls to me to fulfill my requests for information or to revise my estate needs while posing relevant thought-provoking questions that I need to consider to secure my future. One of Peter's best qualities is his ability to answer clients complicated questions in a simple way to ensure comprehension.

Klenk Law Logo
Stars

Alan Kaplan

Peter has done our family's trust and estate work since our children were born. He is not only extremely knowledgeable and honest, but makes sure that our arrangements remain current with the changing legal landscape. I would give him my highest recommendation as a professional in his field.

Let us put our expertise to work for you.

Free consultation within 24 hours.