Living Trust Revocable Document With Incapacity Clause
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FAQ
Typically, the settlor (i.e., the person who created and funded the trust) is the trustee until incapacity or death. Upon the settlor's incapacity, the successor trustee will need to obtain whatever certificates the trust document requires in order to establish incapacity and take authority.
When creating a living trust, you name a successor trustee who would take over management of your trust property in the event you become incapacitated. But what qualifies as incapacity? An incapacitated individual as afore mentioned, is one who has become unable to care for himself, or make appropriate decisions.
When a revocable trust has one grantor, the trust turns irrevocable when the grantor dies or becomes incapacitated. A legal issue arises with a joint trust that determines whether a revocable trust becomes an irrevocable trust.
Many trust documents define the term incapacity to mean the period after one or more doctors have certified that the person is no longer capable of making financial decisions.
This means that the trust belongs to you and that only you can make changes to your trust. You will also name someone as successor Trustee to act on your behalf in the event of your incapacity. In addition, you can elect to name someone else to act as immediate Trustee, if you would prefer.