Incapacity Component Adds to Appeal of Living Trusts

There are some estate planning devices that accomplish multiple objectives, and living trusts are among them.

The primary reason why individuals decide to utilize revocable living trusts is because of the fact that these trusts enable future distributions of assets to the beneficiaries without the hindrances of probate.

Probate is a legal process that can take a lot of time. There are also costs that go along with this process. When you use a revocable living trust rather than a last will to arrange for the transfer of your assets to your heirs, these distributions will take place outside of probate.

Another nice thing about living trusts is the fact that the decisions you make when you originally drafted the terms of the trust are not permanently etched in stone. You can change the terms, and you can act as both the trustee and the beneficiary and have access to and control over the funds throughout your life.

The third thing that is appealing about revocable living trusts is that you can include an incapacity component. A very significant percentage of our nation’s elders become unable to make their own decisions at some point in time.

In cases where interested parties feel as though a particular individual can no longer make sound decisions, the court may be petitioned to appoint a conservator to take over the financial decision-making.  You can avoid this by naming a disability or successor trustee who would have the power to administer the funds that have been conveyed into the trust when you created its terms.

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Litherland, Kennedy & Associates, APC, Attorneys at Law

Litherland, Kennedy & Associates have been providing quality estate planning services in the Greater Bay Area since 1975. They are committed to helping those concerned with protecting their families from the devastating legal effects of disability and death. With the aid of public seminars, educational presentations, articles, and radio/television interviews, the law office has championed the use of revocable living trusts as a proven way to protect families from probate, to minimize or eliminate federal estate taxes, and to prevent the Medi-Cal Recovery lien. Roy W. Litherland and Justin M. Kennedy are certified as Legal Specialists in Estate Planning, Trust and Probate Law by the California State Bar Board of Legal Specialization. They are members of the American Academy of Estate Planning Attorneys and National Academy of Elder Law Attorneys.

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