Establishing Trust

I’m going to get a little personal here, but I think it’s good information for all those going through the same thing. Recently, a family member was diagnosed with dementia. This person is totally of sound mind right now, but we’ve run into some snags along this process. One being, they have only one child, and that child, as horrific as it may be, has decided that they want no part in their parent’s short or long term care leaving that responsibility to other members of the family.

This person is now dealing with a serious challenge(s) and it got me to thinking about how it will all resolve upon the worsening of their condition. They have no plan in place for one thing. This person is well into their 70s and with the assumption that their spawn would take care of them, is now left to their own devices. No will. No long term care plan. No real money to get them the help they might need once their faculties decline. So, now I think about my own parents, and myself for that matter. My parents are completely prepared for their final curtain calls, much to my guilt as their child. As I approach mid-century existence, it prompted me to yet again, read the fine print of adulthood, the next phase. I mean, who doesn’t want to take care of their moms and pops when they can’t do it themselves any longer? Isn’t it our responsibility as their children to take the reins on this and how many of us can feasibly do this? I save this for another discussion, back to it…

My family member is combatting the end of their independence which can be devastating, not to mention the denial aspect of the sickness to begin with. They sit on a 1500+ sq ft home on a double corner lot in a very desired school district. No power of attorney identified and no desire to leave their home. They are starting to have a hard time remembering where things are—ie. the deed to the house. The responsibility for their medical has been established, but what of their assets? It’s a legit concern and one I think about for not only my parents, but myself. It’s not always going to be us they choose.

Estate planning was never on my radar, but I have an Attorney friend who specializes in this type of law, and I was able to get some good tips about some simple ways to do this. Incidentally, when I thought about “estate”, it leads me to think of someone who has many assets or a wealthy state of being, but I’ve learned that this is not really the case most times. It’s about being prepared for the unexpected. The best thing to do is plan ahead and find a local attorney who can guide you through the process with ease to save you time, money, and familial emotional upheaval.

Here are the key points:

Establish a Living Trust. Wills aren’t always effective plans when distributing assets. It’s recommended to do a Living Trust, which basically means the beneficiaries you name in your living trust receive the trust property when you die and you can manage it while you are still living without the process of probate.

What is this probate you speak of? Probate is the official proving and recording of the will as the authentic and valid last will and testament of the deceased. It is time consuming, can be costly, and messy.

Establish a Fiduciary. This person can be a trusted family member. They will manage your assets and financials when you cannot. Make sure you put everything from the phone bill to your insurance on the list. Listing your assets and assigning them is also a good way to be prepared.

Establish Beneficiaries. These will be the individuals or the estate itself that will benefit from your assets. Be specific and everything from insurance policies to the dog should be assigned.

Establish Power of Attorney. This one is important, especially if you become unexpectedly incapacitated mentally. They will help you manage your financial and medical decisions when you cannot, but will also save a family member from an arduous process. If something unexpected happens to you and you, what are your wishes for your property? Sell, rent, pass along to a family member, etc.

Hire an Attorney who will guide you. Attorneys that specialize in this realm will help you save time and money. They will also help you establish your estate in a more private atmosphere.

For more information, feel free to check out some FREE information on Mr. Nance’s website, he has some good tips to follow.