One of the most overlooked benefits of a revocable living trust is its flexibility and efficiency in providing the means and people necessary to provide for your care if you become sick, disabled or otherwise incapacitated. Recent studies suggest that upwards of 27% of Americans currently suffer from a disability, and with our population quickly ageing, this number may increase in the future. As such, it is critical that your estate plan addresses and protects you during the health, disability and incapacity challenges life brings.
1. Comprehensive Control
2. Avoiding Guardianship/Conservatorship Proceedings
If you become incapacitated without a revocable living trust or proper planning, the court may need to appoint a guardian or conservator to manage your affairs. This process can be lengthy, costly, and intrusive, involving public court hearings and ongoing oversight. By establishing a trust, you can generally avoid guardianship proceedings, ensuring that your chosen successor trustee manages your affairs without court interference and often significant delays.
3. Privacy
4. Customization
5. Continuity of Financial Management
Incapacity planning with a revocable living trust ensures that your financial affairs continue uninterrupted. Bills can be paid, investments managed, and important decisions made without delay, helping to maintain your financial stability and well-being during incapacity. Often, the court guardian or conservator process can take a significant amount of time to conclude, which can cause considerable damage to your finances and strain your loved ones.
Incapacity planning is a vital aspect of a comprehensive estate plan. Revocable Living Trusts are one of the best vehicles for the job as they can provide unmatched control, privacy, and customization and enable you to plan for incapacity to reflect your needs and wants. Consult an experienced estate planning attorney to create a trust-based incapacity plan that suits your needs.
