This is true in some very specific cases, but the type of trust that provides asset protection is typically a third party trust where the trustee, who has control over all of the assets in the trust, is someone not related in any way to the settlor of the trust. So you are essentially turning over control to all of your assets to someone unrelated to you by blood or marriage and who is not a beneficiary of the trust. The more common living trust is a vehicle by which assets are distributed upon the death of the settlor, and should be accompanied by a will and powers of attorney for health care and for assets to protect an individual during life if he or she becomes in capacitated.