If you have a Revocable Living Trust, you understand that it can work as an essential incapacity planning tool. If you’re ever handicapped– through disease or injury– to the point that you can no longer manage your own financial affairs, your Impairment Trustee can step in and take control of your trust property. If a Revocable Living Trust is the only estate planning tool in your incapacity plan, then there are probably spaces that need to be filled.
Your Special needs Trustee can only manage property that’s been funded into your trust. That’s why it is essential to also have a Resilient Power of Attorney for finances.
Transferring Property into Your Trust
With a Durable Power of Attorney, you appoint a representative to handle your non-trust property in the event of your special needs. F you have a stroke or are in the later stages of Alzheimer’s, your representative can access property that’s been left out of your Trust, and move it to the Trustee. This ensures that your assets are effectively and consistently handled throughout your lifetime, and that there’s a smooth shift of property to your beneficiaries after you pass away.
Managing Non-Trust Property
There is particular property that needs to not be transferred into your Revocable Living Trust. This includes possessions like pension, life insurance policies, and often even motor cars. With a correctly prepared Resilient Power of Attorney, your representative can handle these possessions on your behalf.
Your Impairment Trustee will not have power to take part in Medicaid planning in your place. With an appropriately drafted Durable Power of Attorney, your agent can manage this job. For additional information on Revocable Living Trusts or Long Lasting Powers of Lawyer, you can speak with an estate planning attorney.