If you have decided to create a living trust that plans not only for your death, but also for your possible incapacity, you should feel peace of mind knowing that your affairs are in order.
Trusts can provide your successor trustees with a great deal of authority and flexibility to accomplish the goals that you outline. It is important, however, to ensure that your trust incorporates a solid chain of command. Otherwise, the smooth transition that you are aiming for in the event of incapacity might not be achieved.
Understand the Chain of Command
In a living trust, the chain of command is the transition from you as trustee to your successor trustee when you become incapacitated or pass away. We cannot stop there, however. The best planning takes into account that your first choice successor may not be available when needed.
Ensure that the Chain of Command is Long Enough
After carefully considering your first choice for a successor trustee, you should select a second choice. You may want to continue and select a third choice as well. Another option is to give your successor trustee the power to designate his successor. This allows for increased flexibility if circumstances have changed since you created your trust, giving your initial successor trustee the ability to take a second look at the people that you originally appointed and decide if they are still a good fit. Finally, you can appoint a corporate trustee or give the beneficiaries the authority to select a trustee in the even that there is no one left to serve.
Creating a living trust in Orange County with a solid chain of command helps to ensure that your affairs will continue to be managed smoothly and efficiently should you become incapacitated.
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