The Weekly Scenario: Revocable Trust and Disability
Question: How important is it to have a revocable trust if I become disabled?
Answer: A primary reason for having a revocable trust (and one that may even be more important than avoiding probate) relates to your potential for becoming incapacitated. Because it is more likely you will become incapacitated than you are to die, it is important for you to plan for the possibility of you or a family member’s disability so that you can be cared for in the manner you desire if that were to happen.
Without a plan for dealing with incapacity, someone is likely going to have to deal with the legal process of a conservatorship or guardianship. This route is going to be more costly, including annual reporting to the court. The court process usually lasts longer than probate as a result of death – and it continues as long as you are disabled.
A revocable trust allows you to choose how your affairs should be handled and sets priorities that you wish to be followed. Your successor Trustees will be able to manage your financial affairs starting at the time you are incapacitated without the intervention of any court.
The conservatorship process can be avoided with a revocable trust plan combined with a durable power of attorney.
As always, if you have any questions or would like to learn more, please contact Steve Shane at firstname.lastname@example.org or .
ABOUT STEVE SHANE
Steve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts, and charitable trust. He is also experienced with drafting documents for business planning, the incorporation, and application for exemption for Private Foundations and the administration of decedents’ estates.
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