How Can a Living Trust Provide for an Elder’s Needs?

 Posted on December 13, 2022 in Estate Planning

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.

Another major benefit of establishing a living trust is that it allows a person to protect their family from probate court costs and delays associated with settling an estate. Without a living trust, a family will need to go through probate court in order to settle a person's estate and distribute their assets according to the instructions provided in their will. Probate can take months or even years to complete due to paperwork, court fees, and other factors, making it difficult for loved ones who may need access to funds quickly following a person's death. A living trust helps avoid this problem by allowing a trustee or successor trustee to access and distribute assets immediately after a person's death.  

Additionally, having a living trust in place ensures that matters remain private after a person passes. No documents must be filed with the court system when settling an estate through a living trust. This means that all information regarding asset distribution remains confidential within the family rather than becoming part of the public record that is available for anyone to view.

Contact Our San Antonio, TX Living Trust Attorneys

Creating a living trust can be an important step in protecting an elder’s financial security as they age. A living trust allows a person to transfer control of their assets into someone else’s hands while also ensuring that those assets are used appropriately for the benefit of the elder in question. In addition, living trusts can help reduce taxes and fees associated with transferring assets after death, which makes them even more valuable for families trying to minimize costs during an already difficult time. If you are looking for ways to protect an elderly loved one’s finances, The Law Office of Ryan C. Moe, PLLC can help you understand your options and ensure that you take the correct steps to create a living trust or other estate planning documents. Contact our San Antonio estate planning lawyers at 210-861-6000 to arrange a consultation today.

Sources:

https://www.investopedia.com/terms/l/living-trust.asp

https://budgeting.thenest.com/better-living-trust-will-26149.html