Planning for Disability; Estate Taxes Are Not the Only Reason to Use Trusts for Estate Planning
26-11-2016 -06:41 PM |Filed in: Trusts | Disability
A Revocable Trust can be an effective tool to care for your property should you no longer be able to handle your own affairs.
After Congress permanently raised the Federal Estate Tax Exemption to over $5 million, some lawyers will tell their clients that there are not compelling reasons for the middle class families to use revocable living trusts for estate planning. While it is true that there may be little reason to worry about (right now) Federal Estate Taxes for most individuals, there is a 1 in 8 chance that an individual will suffer from dementia prior to death.
When an individual becomes unable to manage their own affairs due to mental impairment, court intervention often becomes necessary for individuals who did not prepare for that event. Many people plan for this event by using Durable Powers of Attorney. While Durable POA’s are an effective tool for planning, they can be circumvented by troublesome family members.
A well written Revocable Trust can provide for disability by placing those decisions in the hands of people chosen by you. The provisions regarding disability can provide detailed instructions as to who will decide whether or not you are capable of managing your affairs and who will take over when you or no longer able to make those decisions. While a court may still appoint a guardian over property not in your trust, the property that you have placed in your Revocable Trust will be handled according to the choices that you made when drafting the Trust.
If you are concerned that your close relatives or other heirs may attempt to circumvent your wishes in the event that you are disabled, a Revocable Trust may be a solution to see that your property is handled according to the choices that you have made.
When an individual becomes unable to manage their own affairs due to mental impairment, court intervention often becomes necessary for individuals who did not prepare for that event. Many people plan for this event by using Durable Powers of Attorney. While Durable POA’s are an effective tool for planning, they can be circumvented by troublesome family members.
A well written Revocable Trust can provide for disability by placing those decisions in the hands of people chosen by you. The provisions regarding disability can provide detailed instructions as to who will decide whether or not you are capable of managing your affairs and who will take over when you or no longer able to make those decisions. While a court may still appoint a guardian over property not in your trust, the property that you have placed in your Revocable Trust will be handled according to the choices that you made when drafting the Trust.
If you are concerned that your close relatives or other heirs may attempt to circumvent your wishes in the event that you are disabled, a Revocable Trust may be a solution to see that your property is handled according to the choices that you have made.