Advantages Of A Revocable Living Trust

Financial management in the event of incompetency. Advanced age, serious illness, or an accident may render a person incapable of supervising his or her investments and/or performing everyday financial transactions. A living trust is an effective tool for handling your financial affairs if you become incompetent.

In the trust agreement, you may name yourself as trustee and also name a successor trustee. The successor trustee handles your financial affairs if you are unable to do your own financial management. The trust agreement tells how and who is to determine you are incompetent, and gives directions for the management of financial affairs which the successor trustee must follow.

A successor trustee does not have the power to make your health care decisions. To appoint someone to make your health care decisions if ever you are unable to speak for yourself, and to give instructions for health care providers to follow if you are unable to direct your health care, you must complete an Advance Directive.