There are numerous types of trusts available for estate planning, but the most important types for Alzheimer’s or dementia patients is the Living Trust. The living trust provides for the private management of assets by the person you appoint to do so if you are unable to manage your assets yourself. In short, when you become incapacitated, your trustee can manage your assets without court intervention or assistance.
You can act as your own Trustee until the time that you are incapacitated. At that time, the secondary trustee takes control. The trustee may be a spouse, adult child, relative, friend, business associate or a professional fiduciary. You can also name co-trustees if you desire.
One key point to consider when naming a trustee is that because living trusts are not under direct court supervision, a trustee who does not act in your best interest may be able to take advantage of the situation.
Once the trust is created, it must be funded. This is the transfer of assets from your own name to whomever is acting as trustee of your living trust, be that you or some other person.
If you have a Living Trust, you still need a Last Will and Testament. Your will affects assets that were held in your name alone that were not in your trust or were help in some other form of ownership.
As you can see, Living Trusts can be a complicated matter, and are one that should always be handled by an experienced elder law attorney.
