This is the next article in my series on the use of a living trust as part of a Florida estate plan. My last article discussed using a living trust to protect one’s heirs from themselves. Such an instrument allows one to put conditions in place which an heir must meet before they inherit. An attorney can assist you with determining the types of safeguards which can help prevent harm which someone may do to themselves after a financial windfall. In this article, I will be discussing another benefit of using such an instrument – the ability to provide for the long-term care of a loved one. If you are in need of assistance then contact my office today to speak with a Melbourne lawyer.
A living trust is a vessel which can contain one’s assets while still allowing them to enjoy the use of those same assets. The individual who places their wealth into the trust is known as the “grantor” and they often also serve as the trustee. Upon their death, a “successor trustee” will assume responsibility for managing the trust. This successor trustee is responsible for following the terms of the trust. If they vary from these terms and requirements then they can be removed from their role and may even face personal liability. In other words, if one has long-term wishes which they want honored, after death, then a living trust is a vehicle which can meet that goal.
It is common for one to pass away and leave a loved one, such as a spouse, behind. Many people often think that their children and heirs will operate with the surviving spouse’s best interest at heart. This is why they may leave behind an estate plan which simply transfers all of the wealth to the spouse. Unfortunately, it is not uncommon in such situations for a surviving child or family member to “take care of” the spouse by either moving in with them or bringing them to live in their own home. Such relatives often live off the family wealth and may very well use family money for their own purposes, rather than taking care of the surviving spouse. In short, such situations involve the surviving spouse receiving less than an optimal situation so that someone else’s lifestyle can be fully funded.
Consider the following example. Paul and his wife Cindy are elderly and financially comfortable. They have three adult children. Cindy has begun showing signs of dementia. Paul is her prior caretaker, but is worried that he may not outlive Cindy. The couple place their assets in a living trust, which states that their oldest child will serve as the successor trustee. The terms of the trust require that, in the event of Paul’s death, Cindy will go to the assisted living home listed in the trust and will receive premium care. This will be funded from the assets of the trust. No other money is to be distributed from the trust. Upon Cindy’s passing, remaining funds will be equally distributed amongst the three children. This type of arrangement, for obvious reasons, prevents a situation in which the children may use the money more for their own purposes than for Cindy’s care.
If you are concerned about the long-term care of a loved one then a living trust may be a viable option when you are creating an estate plan. When preparing your plan, it is important to consider all possibilities and to be prepared for them. As a Melbourne estate planning lawyer, I am able to assist with the creation of a living trust. I pride myself on providing the highest level of service. I recognize that no two matters are the same and my firm will give your case the attention it both needs and deserves. If you are in need of assistance then contact us online or by telephone today to schedule an initial consultation.
My firm also services Florida clients in the Brevard County cities of Titusville, Cocoa, Palm Bay, Grant, Valkaria, and Rockledge, as well as in the Indian River County areas of Fellsmere, Sebastian, Vero Beach, Indian River Shores, and Orchid. We are also able to virtually work with clients throughout the state.