• June 13, 2011 /  Basics

    living trustsThere are various types of living trusts, including revocable and irrevocable.

    Revocable

    The Trustor is alive but has resigned as Trustee for a variety of reasons. A fiduciary is asked to be Successor Trustee. This Trust is revocable and the Trustor is still alive and has capacity, the ability to make decisions. Though the Trustor may not make financial decisions, he or she may still make medical decisions. The fiduciary handles financial aspects such as figuring out bills, income, and managing the finances. The fiduciary may be removed at any time from this position by the Trustor.

    The fiduciary can manage a wide variety of things including overseeing property and investments. Much like a CEO oversees a company, the fiduciary oversees things and may hire a property management company to handle overseeing the property. The fiduciary also looks for investors that match the goals he’s trying to reach with the Trustor’s investments.

    On the medical side, if the Trustor loses capacity and the fiduciary was appointed with Health Powers of Attorney, the fiduciary works with nurses and medical professionals to develop a care plan for the client. Over time the plan may change as the Trustor’s health changes. That may change the financial plan as well if additional funds are needed to cover medical costs.

    Irrevocable

    There are several types of Irrevocable Trusts. The trust is generally frozen and no changes can be made unless ordered by the court. The Trustee acts according to the terms of the Trust and California Probate Code.

    The fiduciary is a professional designed to have time to care for all these needs. He or she is dedicated wholeheartedly to taking care of people and their estates. Family members can rest easier knowing these needs are being taken care of without their having to take time off from work and it taking a toll on their busy lives and schedule to care for all of this and any expenses incurred.

    Posted by Michael Storz @ 1:34 pm

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