[Lynn]

Don't confuse exemption laws with forfeiture laws. Almost no correlation. In the yacht case above, it would not have mattered how title was held. The "owner" (in your example, the irrevocable trust) receives no protection unless they put forth an "innocent owner" defense that works.

Nothing placed in a revocable trust is protected from a potential creditor just by virtue of being in the trust. Much of what we own is exempt from a potential creditor under homestead laws. In OK, that means, home, one car, household goods and furnishings used for personal family and household use, 100 chickens, five milk cows and their calves, two horses, bridle and tack, all money held in retirement accounts (that's why the Goldman family could never attach OJ's pension money) tools used to make a living, etc. Placing those things in a revocable trust doesn't diminish that protections, but it doesn't increase it. However, I have seen more than one creditor's atty just give up when property is in trust, thinking that collecting would be much more difficult.

The basic rule is "If I can get to it, so can a potential creditor."

As for the irrevocable trust, I don't see how that makes any difference AS FAR AS HOW THE LAWS ARE CURRENTLY ON THE BOOKS. If I loaned you my car, and you used it to transport drugs, it is subject to forfeiture, even if I had no idea what you were going to use it for. It makes no difference if I owe $50k on the car.

That is why I believe the 2019 Supreme Court ruling is such a big deal. I think once folks start using that as a defense, the states will back off. Problem is the legal system takes years to work out all the details. There is an old saying: The wheels of God's justice grind slowly, but exceedingly fine. It is the same way with the legal system. Eventually some state (or municipality like Detroit) will cross paths with the wrong person in an especially grievous manner, and will be willing to take on the state or city in Federal Court. Once one state or city gets hit with a big damage verdict, everyone will back off.

Of course, this is just my opinion. These things take time. Look how long we have been trying to desegregate schools, even though Brown was decided almost 69 years ago, and ordered schools to desegregate "with all due speed".