Most people don’t enjoy thinking about the possibility of being seriously injured or developing a medical condition that leaves them incapacitated. Yet, this is what I do every day. As responsible adults, we must consider that you may one day find yourself unable to tend to your daily needs and make various critical decisions about your finances and property.
Virtually everyone should spend at least some time planning how they will address the various issues that could and will arise if they are incapacitated in a manner that renders them unable to fulfill certain duties and responsibilities. This is important to think about regardless of the value of your assets and wealth.
If you are currently in good health, you’re most likely able to determine how your assets are managed and distributed. That could change if you become injured or sick.
Luckily, there are steps you can take now to protect yourself, ensuring that someone doesn’t take advantage of you or manage your assets inappropriately should you find yourself unable to manage them on your own.
Many people mistakenly assume that a trust is essentially the same thing as will. This is not the case. Although a trust can theoretically replace a will, there are numerous critical differences.
A will does not go into effect until you die. A trust, on the other hand, will go into effect once it has been signed and funded.
When you place wealth and assets into a trust you can name someone as a trustee. This person is someone who is responsible for managing the assets within the trust should you be unable to do so yourself.
A trust offers several benefits that a will does not offer. For example, with a trust, your loved ones can avoid the probate process when receiving assets you have left for them after your passing. This allows them to receive those assets relatively quickly.
Additionally, a trust can offer certain key benefits while you are still alive. If you become incapacitated, but have already established a trust and explained your wishes to the trustee, you can enjoy the peace of mind that comes from knowing someone who you are comfortable handling matters is managing the assets in your trust according to your preferences.
Like I noted above, this is usually not fun to think about, but the peace of mind that comes with having made these arrangements is invaluable.
Working with an experienced professional to create a trust and estate plan has many benefits. You want to be confident that your trust plan is thorough and enforceable and properly designed and implemented.
Coordinate with a legal professional who has the qualifications necessary to ensure your trust serves your needs and desires. At the Law Offices of Andrew Cohen, a Santa Clarita living trust attorney will discuss your goals to help you establish a trust that serves its purpose effectively. Learn more about how we can help by contacting us online or calling us at 661-481-0100 to set up a meeting.