Posted by: Woodfork Law | June 18, 2013

Is a trust right for everyone? Now?

It is a fact that people are living longer.  According to reports, the average life expectancy for men and women is approximately 84 and 86 respectively.  These numbers will only increase in the future.  Since we are living longer, there is a greater chance that you will become incapacitated at some point in your life.

Incapacity is a very good reason to have a revocable living trust.  If you have a revocable living trust, you may state for who will manage your trust assets if you are unable to do so.  The benefit is that the person you designate avoids the time and expense of otherwise going to court and getting a Conservator or Guardian appointed.   Additionally, in the event of your incapacity, it will be difficult for someone to use a Power of Attorney to carryout your wishes.  Banks and other financial institutations are very suspicious of Powers of Attorney because of fraud.  As a result, they require many hurdles before validating a power of attorney.  Banks and financial institutions are not as skeptical of trusts.

However, there is one obvious drawback in using a revocable living trust for incapacity.  That is the trust only governs assets in the trust.  Therefore, if you have not placed your assets in the trust, they cannot be managed if you become incapacitated.

http://www.woodforkandassociates.com

 

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