In setting up your Revocable Living Trust, you'll be asked to name a Disability Trustee to administer your trust in the event you become mentally incapacitated. In addition to your first choice, you should also name one or more backups in case your first choice can't serve. Here's a list of what a Disability Trustee is required to do during any period you become mentally incapacitated and unable to manage your financial affairs:
Investing the Trustmaker's Assets
The Disability Trustee will be responsible for deciding where the Trustmamker's liquid assets will be held and who will be responsible for overseeing their investment, such as the Disability Trustee or a professional financial advisor.Determining the Status of Real and Tangible Personal Property
The Disability Trustee will need to determine whether real estate and tangible personal property should be bought, held, or sold. This may include deciding to sell the Trustmaker's car in order to purchase a properly equipped van or other vehicle, or selling the Trustmaker's primary residence or rental properties in order to raise the cash necessary to pay for the Trustmaker's care.Paying the Trustmaker's Bills
The Disability Trustee will need to pay all of the Trustmaker's bills, including medical bills and personal bills.Filing the Trustmaker's Income Tax Returns
The Disability Trustee will be responsible for preparing and filing all income tax returns required for the Trustmaker's income, including local, state and federal returns as well as any returns for the Trustmaker's businesses if any are still up and running.Deciding Where the Trustmaker Will Live and Arranging for the Appropriate Care
The Disability Trustee will need to decide where the Trustmaker will live, such as at home, in an assisted living facility, or in a full care facility, and then who will be responsible for taking care of all of the Trustmaker's personal and medical needs.As you can see, serving as a Disability Trustee is a huge responsibility and often time-consuming burden. But with the help of your estate planning attorney, you should be able to choose the right person or institution for the job.
