If you have a Revocable Living Trust, you understand that it can work as a necessary inability planning tool. If you’re ever handicapped– through illness or injury– to the point that you can no longer handle your own financial affairs, your Disability Trustee can step in and take control of your trust property. However, if a Revocable Living Trust is the only estate planning tool in your incapacity plan, then there are probably spaces that require to be filled.
Sadly, your Special needs Trustee can just manage property that’s been moneyed into your trust. That’s why it’s important to also have a Durable Power of Attorney for finances.
Transferring Property into Your Trust
With a Long Lasting Power of Attorney, you designate a representative to manage your non-trust property in the event of your disability. So, f you have a stroke or remain in the later stages of Alzheimer’s, your representative can access property that’s been overlooked of your Trust, and transfer it to the Trustee. This guarantees that your properties are properly and regularly managed 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 certain property that should not be moved into your Revocable Living Trust. This consists of properties like retirement accounts, life insurance coverage policies, and sometimes even motor lorries. With an effectively drafted Resilient Power of Attorney, your agent can manage these properties on your behalf.
Your Special needs Trustee will not have power to take part in Medicaid planning on your behalf. With an appropriately prepared Long lasting Power of Attorney, your representative can manage this task. For additional information on Revocable Living Trusts or Durable Powers of Attorney, you can speak with an estate planning attorney.