Quote:
Originally Posted by manaboutown
Please consult a reputable attorney specializing in such matters. I have used a RLT for over twenty years. It contains a provision that if I am cognitively incapacitated the trustee will run the show as no one in my immediate family is capable of doing so. If my incapacity is temporary I can be restored to managing things with a physician's consent. That provision gives me peace of mind.
RLTs have many advantages, especially reducing probate expenses and hassles. In simple modest estates it can be a do it yourself project although I do not recommend it. What Is a Revocable Living Trust and Why Make One? | Nolo |
Manaboutown: Thanks for the discussion. I'm researching this and going down my own path as far as I can to make the legal encounter as efficient as possible (most estate lawyers charge by the hour). The link within your referenced link that discusses the DIY possibility does not work. Any updates or references that you found useful?
Some clarifications: I have found the the "Revocable Trust" document usually does not address incapacity. That is done with a "Durable Power of Attorney" document and to a lesser extent by a "Health Care Surrogate" document (non life threaening health care decisions) or ultimately through a "Living Will" document ("plug pulling" or DNR instructions). The Trust package usually includes all those documents as well as a "HIPAA Release" for authorizing medical records release and a "Pourover Will" to address assets that are not titled in the trust.
You raise an interesting point about restoring your decision making powers. Never thought about it. It may be a standard provision within the Power of attorney.
Further clarification: You imply that you have "used" RLTs for a long time. I believe you meant that you have set up the trust and placed assets in it. The actual decision making is still yours with the same SS number. So the way I see it, the RLT really does nothing for you while you're alive: no asset protection, no tax benefits, etc. It DOES set things up to make it easier and more private as you transcend to fly your cloud.
When you pass, the revocable trust now becomes irrevocable and your "successor trustee" (that person is usually named within the trust document) calls the shots and hopefully will follow your instructions. The assets that are in the trust are not subject to probate, since the trust already owns them. Also, regardless of who held power of attorney while you were still alive, the POA terminates upon death and the successor trustee takes over.
Manolo2 (OP): It sounds like you are concerned about your assets being diverted against your wishes. Merely setting up a RLT will not address that, since that trust is changeable (hence the name "revocable). So if someone exerts undue influence on you while you are alive, but short of incapacitated, it would not accomplish your goals. If you cede decision making authority to the Power of Attorney holder while you're alive, that could accomplish your goals. If that POA were a corporate entity, it would probably have even more force, but corporate trustees are not positioned to take on the POA responsibility. They step in as "successor trustees" after your death.
An extreme alternative would be to set up an "Irrevocable Trust" or simply gift the asssets while you're still alive, but you would also lose control.
Also, corporate trustees normally don't get paid to manage your assets until after you pass, another reason why they most probably would not be involved in protecting your assets while alive.
Once you pass, an RLT
would accomplish your goals. So would a will. So my feeling is that a RLT has many advantages (no probate, ease of transition, privacy, continuity after you die, etc ), but it will not help with elder abuse any more than a will.
PS Some strong laws have been passed recently in Florida to address elder abuse, but I gather the purpose of your post is to try to avoid legal hassles after your'e gone.