If my home went into foreclosure, how could I protect my bank account savings in order to start a new life?

I have heard that creating a living trust might not protect me nor my etts, particularly if I'm a beneficiary to trust designee, and the one that created the trust. I have 2 kids that I could gift the cash to. Can a lender/creditor come after my kids etts since they are minors and I'm the custodian of their bank accounts until age 18? I'd really like to find a way to shelter and protect my cash savings (about $35,000) that I have worked all my life for, rather then letting a crappy housing market wipe me out in a span of 2 years. I live in Arizona by the way- if that helps. I have never filed bankruptcy, and I always pay my bills, but if i had to foreclose I do NOT want to lose my last and only means of getting myself back on my feet. I fought so hard for so many years to save. Thank you for any advice.