 TITLE: How Living Trusts Can Safeguard Your Assets CONTENT: Can a Living Trust Affect Your Credit?\n--------------------------------------\nEvidence of a living trust will be absent from your credit report, so it will have no impact on your credit history or credit scores. However, as with virtually all financial decisions, there could be an indirect effect.\nFor example, if you want to apply for a loan or buy a home, you'll be listing your assets. Lenders will want to know what you have in reserve because it helps them to assess risk. If you have a revocable trust, the lender knows that the assets in the trust are available in the event that you default. That reduces their risk. On the other hand, if a large portion of your assets are tied up in an irrevocable trust, lenders have no claim to that property, so you won't be able to list it as an asset. That may hurt your ability to qualify for the credit product you want.\nThe bottom line: Living trusts are designed to help your heirs receive the amount you want them to have, with few extra costs and without unnecessary hold-ups. You can be sure they get the amount you intend by paying off your debts before you pass on. END