Using a Revocable Living Trust as an Estate Planning Tool for Elderly Adults
Are you currently thinking about your own needs after retirement, as someone in your 40s or 50s? Planning ahead is always beneficial. At the same time, you might be thinking about estate planning needs for an elderly parent who has not yet considered what they should do now in the event of needs that may arise sooner rather than later. One tool that you may want to consider for yourself or for an elderly parent is a revocable living trust.
How can a revocable living trust be used as an estate planning tool for elderly adults? And how can a revocable living trust work in connection with other tools of elder law and asset protection? Our Connecticut trusts attorney can explain in more detail below, and we can answer any specific questions you have today about your circumstances or your elderly parent’s situation.
What is a Revocable Living Trust?
What is a revocable living trust? This is a type of trust that is revocable, as its name suggests, which means that the settlor (the person who makes the trust) can change the terms or cancel the trust altogether during their lifetime for any reason. As such, it is a flexible type of trust in which the settlor retains power over the assets. A revocable living trust can also hold a wide range of assets owned by the settlor, from liquid assets to real property.
Once the settlor dies, the terms of the revocable living trust become set and it cannot be altered. At that point, the assets in the trust are distributed according to the terms left in place by the settlor.
Using a Revocable Living Trust for Elderly Adults in Estate Planning
For elderly adults who want to leave assets to loved ones or charitable entities, a revocable living trust allows the settlor to decide on the terms while also benefitting the beneficiaries — all of the assets in a revocable living trust can be distributed without going through the probate process. In addition, all of the assets and distributions remain private, unlike assets and distributions that go through the probate process.
Yet it is important to be clear that a revocable living trust does not protect assets from Medicaid in the event the settlor requires long-term care and Medicaid eligibility. In order to protect assets while acquiring or maintaining Medicaid eligibility, you will want to discuss a type of irrevocable trust, a Medicaid asset protection trust, with your estate planning lawyer.
Contact a Connecticut Estate Planning Lawyer Today for Assistance with Your Trusts Needs in the Canton Area
Whether you are retired yourself and thinking about your estate planning needs, or you have an elderly parent who has not yet created an estate plan, a revocable living trust can be beneficial for many reasons and in various individual circumstances. In addition, as we discussed above, it may also be helpful to consider a Medicaid asset protection trust as part of a long-term care planning strategy in addition to a revocable living trust. An experienced Canton trusts attorney at the Law Office of Brian S. Karpe can answer any questions you have today about your own estate planning needs or those for an elderly parent, and we can begin working with you as soon as you are ready. Contact our firm to learn more about general estate planning, trusts, and elder law and asset protection services we provide in Connecticut.
Source:
cga.ct.gov/2023/pub/title_45a.htm
