Revocable Living Trust
A revocable living trust is a legal document which functions similar to a will. Clients indicate how their assets will be distributed when they become deceased. However unlike a will a living trust avoids probate at death. It also prevents the court from controlling your assets if your become incapacitated.
Revocable trusts allow clients to control the assets they leave their beneficiaries. They can acquire, dispose, etc. The revocable trust can be terminated at any time.
A revocable living trust does not, in and of itself, provide asset protection. However, it does avoid probate, allow you to keep control and there are a few tricks that will enable your trust to provide some appearances of asset protection.
Normally, an asset protection trust with a United States citizen or US resident as the settlor is tax neutral. There should be no additional income, estate, gift or excise tax because of the settlement of an asset protection trust nor should this type of trust be expected to save taxes.
Clients should also know that foreign trusts cannot be legally be used to hide income from the Internal Revenue Service.
If you are considering an asset protection trust always have it done by a credible tax expert with experience. You are getting wrong advise from someone who is selling you on the idea that an asset protection trust or any foreign trust will save you income taxes.