As a person ages, they may require extra care and support. If you are the family member of an elder who needs assistance, you may be wondering how to provide them with the best possible care. One option is to set up a living trust as part of the estate planning process. Living trusts can help ensure that an elderly parent or other family member has access to the resources they need as they age. Although the process of setting up a living trust can seem complicated at first, there are many benefits that come with having one in place.
What Is a Living Trust?
A living trust is an estate planning tool that allows individuals to use their assets to meet their needs while they are alive and well, while also specifying who will receive those assets after they die. With a revocable living trust, the settlor (the person creating the trust) has the right to revoke or change the terms of the trust at any time during their lifetime. A living trust allows a person to transfer control of their assets—such as property, investments, and financial accounts—to another person in order to provide for their needs. The trustee (the person who manages the trust) will have full control over these assets and can use them as necessary in order to meet the elder’s financial needs.
Benefits of Establishing a Living Trust
Living trusts offer numerous benefits for elders and their families. They can provide peace of mind by allowing family members to know that their elderly loved ones are being taken care of financially without having to worry about managing their finances directly. Since living trusts are usually revocable, their terms can be adjusted if a person's needs change. They may also allow a person to begin transferring assets to other beneficiaries at any time, either before or after their death.
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