Q: The IRA Trust has been stated to be similar to a revocable living trust, but my understanding is that the revocable living trust is not creditor proof. So, how does the IRA Trust offer this type of protection?
A: The IRA Trust is like a revocable living trust in that it starts out as revocable and becomes irrevocable at the maker’s death. A testamentary irrevocable trust then offers protection for the beneficiaries, depending on its terms. Neither trust offers protection for the trustmaker during his or her lifetime.
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