As part of creating a life care plan to meet your future medical and financial needs, consider two types of living trusts – a revocable living trust and a living trust plus. A revocable living trust provides you with full use of the established trust income and principal for life. When you die, the assets included in the revocable trust may continue to be held in trust for beneficiaries, such as your children, or may be distributed. The most important aspect of the revocable trust is that it prevents probate proceedings – a process that determines how your assets should be used in the absence of a will or trust such as this one.
Revocable Living Trust
This document can provide continuous, uninterrupted asset management, via your assigned trustee, should you become incapacitated. A revocable trust does not protect your assets from the expenses associated with medical care; in fact, the trust is set up to fund long-term care if needed.
Living Trust Additions
A living trust can be designed to protect your assets from probate, lawsuits and nursing home costs since a revocable trust doesn’t protect your assets from probate or long term medical cost. A living trust specifically designed to include additional protections prevents your assets from depletion due to creditor attacks, accidents, and extended hospitalization expenses, including long term nursing home care.
Getting Help With Your Life Care Plan
Asset protection trusts contain many parts. Going it alone is risky. When you’re ready to create a life care plan, seek counsel with an elder law attorney, estate planning attorney or an asset protection attorney to ensure your life care plan completely covers you and your estate.