Planning for Incapacity: The Value of a Revocable Living Trust

When you think about a Revocable Living Trust, the first thing that comes to mind is probably the fact that it is useful for avoiding probate when you pass away. But your Revocable Living Trust can be used for another valuable purpose during your lifetime.  It can help you avoid Guardianship if you are ever incapacitated.

Guardianship is the process your family would likely need to go through if you were rendered incapacitated because of illness or injury. For example, if you developed Alzheimer’s disease and lost the ability to pay your own bills, manage your own financial accounts, or even make your own decisions regarding your medical care, your family would have to go to court to have a guardian appointed for you. This person would then take charge of handling all the day-to-day responsibilities of managing your affairs.

Guardianship proceedings involve legal fees and court costs, it’s a public process, it’s time consuming, and it means that a judge you have never met will be in charge of choosing a guardian to take over your life and your finances. And the guardian the judge selects might not be someone you would have chosen. If you have an incapacity plan in your revocable living trust, these uncertainties can be avoided.

When you establish a Revocable Living Trust, you appoint a trustee to take charge in case you’re ever incapacitated. This person will have the authority to take control of all the property you’ve transferred into your trust, and he or she will manage that property on your behalf, according to the instructions in your trust document. You can choose someone you trust, or a corporate trustee and provide for the smooth transition of management of your property if you cannot do so for yourself.

However, there are limits to what a Revocable Living Trust can do; your trustee will only have control over property that has been transferred into your trust. Any property that is left out will be beyond the trustee’s reach. So, you will also need a Durable Power of Attorney appointing an agent to manage your non-trust assets.

You might also want an Advance Health Care Directive and Living Will, letting your doctors know what medical interventions you do and do not want.

We at the law firm of Debra G. Simms, P.A, can help you explore your options and choose the strategy that is best for you and your loved ones.

Debra G. Simms is located at 781 Douglas Ave., Altamonte Springs and can be reached at 407-331-4(LAW). Estate Planning consultations are available.

Debra G. Simms

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