29 Oct The Benefits of a Trust When Incapacitated
Creating a trust isn’t often one of the top things people want to do. However, as they age, setting up a trust is something everyone should do. While some people think working on this aspect of life is only a reminder that they will pass away in the future, a trust is an important element to have in place should you become incapacitated and unable to care for yourself. Explaining the benefits to an elderly relative will help them make the right choice.
Care When You Can’t Make Decisions
Most people only think of a will or trust as something that is used to divide property and assets after they die. A trust, though, can go into effect when you are incapacitated instead, allowing your family members to use your money and assets to provide the care you require. If you only have a will, this will not be the case and your family could quickly lose control of the situation, putting your life and wellbeing in the hands of the courts instead of your loving family.
Creates a Power of Attorney
From a legal standpoint, no one can speak for you without having a power of attorney in effect. When you create a living trust, you will name one or several people with whom you will entrust all your affairs if you should become incapacitated. This person can make decisions for you when you are not in a mental state capable of making these important decisions. This person can also take action on your behalf without requiring your explicit consent.
In the case of some trusts, you no longer have control of the assets or funds you put into the trust account. This is why it is best to create a revocable living trust. This type of trust provides you with the greatest flexibility of all the options. If you become incapacitated on a temporary basis due to an illness or injury, the trustee will gain control over your affairs for the duration of your ailment. When you recover, though, the control returns to you so you don’t have to worry about what someone else may be doing with your assets.
Protect Your Property
If you own property, a living trust is extremely important. Without a proper trust, the court will appoint a guardian over your property. This means your property could be left to anyone. If the guardian is not a family member, your estate may be responsible for paying fees. If a family member is named guardian, though, it can cause fighting in between family members.
If you have been putting off getting a living trust put in place or you have been trying to encourage an elderly relative to do so, there’s no better time than now. Don’t wait until you become incapacitated and cannot take care of your own affairs. Make sure you will be taken care of by your family members and that you can continue to reap all the benefits of your assets.