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5 Provisions for Your Living Trust That Help in the Event of Incapacity. While many people know that it is important to create an estate plan that distributes their assets upon their death, fewer people understand the need to plan for disability or incapacity. If you should become incapacitated, a well thought out estate plan can allow your loved ones to easily step in and manage your affairs. A living trust may be the most important tool for accomplishing that goal.

You Can Customize Your Living Trust

There are several ways to tailor your new Orange County living trust to help plan for your incapacity. Following are five examples:

  1. Consider including broad language that authorizes your successor trustee to make distributions, either to you or to others for your benefit. For example, your successor trustee may make payments to maintain your primary residence or to compensate your care providers.
  2. Clearly define how, when, and under what circumstances you are to be considered incapacitated. Doing so will allow your loved ones to avoid pursuing formal guardianship proceedings through the probate court. Such proceedings are often time consuming and expensive.
  3. If remaining in your home rather than a medical or rehabilitation facility is important to you, consider including language to that effect within the trust. You can specifically require that the trustee do everything reasonably possible to allow this to happen.
  4. Consider whether you want to allow the trustee to make distributions to anyone who is dependent upon you, such as a spouse or child.
  5. Consider including language that gives the trustee the authority to make gifts to your family members upon your incapacitation. These gifts may be important if your estate has potential estate tax liabilities, or if you need to qualify for needs-based Medicaid benefits.

5 Provisions for Your Living Trust That Help in the Event of Incapacity. For more information about creating an estate plan or learning how a living trust can help you accomplish your goals, fill out our online contact form today.

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