Using the Disability Plan in Your Revocable Living Trust to Avoid Guardianship

For the past week I've been working with the family of a client who recently became mentally incapacitated due to an accident. We had updated the client's 1998 Revocable Living Trust in 2005 and as part of the update we included a solid disability plan. Aside from this, the client already had the majority of her assets funded into her trust, and so we helped her to get the rest funded.

When the time came last week to invoke the disability provisions of the client's Revocable Living Trust, the family was able to secure written disability certificates from two doctors and one family member, all of whom the client had appointed to act as her "disability panel." The Disability Trustee selected by the client was then able to step into the client's shoes and take over management of the client's assets, all without the intervention of a court.

The family was relieved to be able to go about the client's business with only a minimal amount of effort. Contrast this with the cost, time and total loss of control it takes to set up a court-supervised guardianship or conservatorship, and the value of a Revocable Living Trust really becomes priceless.

• What is Guardianship or Conservatorship?


• How to Avoid Guardianship or Conservatorship


• What Happens if You Don't Have a Disability Plan?


• What is a Revocable Living Trust?


• Wills vs. Revocable Living Trusts - What Do You Need?


• When Should You Update Your Estate Plan?