Do I have to be wealthy to set up a trust?
This is a common misconception that you have to have significant wealth in order to set up a trust. There are several different types of trusts. Most common are the revocable living trust that one would set up in order to avoid probate. The other is an irrevocable trust, which is primarily for asset protection planning if you're concerned about a long-term illness. If you are concerned about a long-term illness, the ones who are most concerned about this type of asset protection planning would those who have modest wealth. An irrevocable trust would be very important to be set up because you specifically are not considered very wealthy.