God knows evil but He did not create it. God gave Lucifer a free will and Lucifer became prideful and jealous of God so God cast Lucifer and a third of the angels out of the third heaven and Lucifer became Satan. Then Satan and his angels battled Michael and his angels in outer space and lost and Satan got thrown to Earth. The next thing that will happen is Jesus will finally defeat Satan once and for all and cast him into the lake of fire to suffer eternal damnation and life without God because that's what he chose. Believers in Christ will be with God for eternity and God will protect us from evil. I do believe God will always allow us free will. God forgets our sins, I do believe our sins will be erased in our mind when we die and we will start new with God and will not understand the concept of good and evil.