If your home is in a living trust is it protected form creditors and the IRS?

If the trust is properly drafted the property can be removed from your estate entirely. However, the trust must be drafted by an expert in trust law. If the grantor retains any power over the trust property, it will be vulnerable to creditors and taxation. You need to consult with an attorney with a great reputation who is an expert in trust law. She/he can review your situation, your needs and explain your options.