Revocable Trusts for the Elderly
From Our “Ask a Question” Mailbag: “I have been considering forming a Revocable Living Trust to avoid probate. But I have also been told that Revocable Trusts for older people are a good idea. Please explain: are revocable trusts a good tool for elderly people?”
Revocable Living Trust Attorney Daniella Horn
Are Revocable Trusts for the Elderly a Good Idea?
In short, revocable trusts are excellent tools for older people. Let’s talk about why.
What Is a Revocable Trust?
A Revocable Trust is a trust that “can be revoked.” This is the opposite of an irrevocable trust. If you form and fund an irrevocable trust, you can NEVER get the assets back. In the alternative, if you form and fund a revocable trust and decide you don’t like it, you can “revoke” the trust and take back the assets.
What Is a Revocable Trust’s Purpose?
Most people think of a Revocable Trust as a tool to avoid probate. While this is true, a revocable trust serves other purposes, such as setting up a system where your family can easily assist you with your assets without you giving up control.
How Does a Revocable Trust Work?
You create the revocable trust. You are the “Grantor.” You “Grant” the power to the trustee to hold assets for the “Beneficiary.” With a revocable trust, you are the Grantor, the Trustee, and the Beneficiary.
So, you can move the deed to your house into the trust without giving up control or use of the house. AND, if you don’t like the trust, you can “revoke” it and take back the house.
How Does a Revocable Trust Help as a Tool for the Elderly?
We all know that we may need help paying bills and managing our assets as we age. A revocable trust makes this easier.
Typically, a person forms the revocable trust and serves as the trustee. But you can also name a co-trustee with the power to manage trust assets for you. So, you could name a child as a co-trustee so that when you need help, they can easily start managing assets and paying bills.
For example, Martha formed a revocable trust and named herself and her son co-trustees, each able to act independently. For the first four years, Martha managed the trust by herself. Because she could act independently, she didn’t need her son’s help. Then, Martha’s health declined. She struggled to keep up with bills and manage her stock account. Her son seamlessly started helping her. As co-trustee, he always had the power to manage the trust assets and pay bills, but until now, he wasn’t needed. Martha is relieved to receive the help, and her son is pleased with how simple it was for him to start helping his mother.
In Conclusion, Revocable Trusts for the Elderly is a Good Idea.
The conclusion is that while most people form revocable living trusts to avoid probate, they have many other uses. One valuable tool is the ability to use the trust to assist older people.
If you want to know more, please read my article, Revocable Living Trusts: Everything You Need to Know.
I hope you found this short article about Revocable Trusts for the Elderly. Contact us if you want to know more or have an estate that needs our help. Let our Probate and Estate Planning lawyers help walk you through what can be a confusing process. Feel free to contact our office for a free consultation. It’s All We Do:
Wills, Trusts, Probate, and Estate Litigation!
It’s What We Do!
Peter Klenk, Esq. Pennsylvania Revocable Trust Lawyer, New Jersey Revocable Trust Attorney
Tags: Living Trust, Revocable Trust
