How To Set Up A Trust Fund For Elderly Parent
If your parents have reached an age where they demand assistance with their finances, you may take already stepped in to help. If not, it'southward important that you sit down with them and discuss their financial health. Find out if their assets have been managed appropriately, if they have acceptable savings, or if they have a lot of debt. To ensure that your parents' finances are protected and managed accordingly, they need a living trust.
What is a living trust?
A living trust is a legal document that dictates how to manage your parents' assets and belongings and what will happen to them when your parents pass away. When your parents pass away or become incapacitated, the trustee will accept over the management of their assets and property. Unlike wills, trusts remain private and do not take to go through probate, saving time and money.
Related commodity: What is the Probate Process if You Die Without a Will or Trust?
How can I aid my parents set up a living trust?
The first step to setting up a living trust is to get organized. Start by making a list of all your parents' avails and gathering all the necessary documents such as deeds, titles, stock certificates, life insurance policies, etc. Next, your parents volition need to cull the beneficiaries to receive their assets upon their decease. Beneficiaries could include family, friends, or charitable organizations.
Your parents will also demand to choose a successor trustee. With a living trust, your parents volition be their own trustees so they tin continue to command their assets. When they die or become incapacitated, the successor trustee will pace in to manage financial affairs, pay debts, and distribute avails accordingly. Later you and your parents have cataloged their assets, gathered documents, and chosen beneficiaries and trustees, you lot're ready to create the living trust document.
Related article: Family Pressures & Responsibilities When You Are the Trustee to Your Parent'southward Trust
Do I need to hire an attorney to gear up a living trust?
Many people cull to rent an estate planning attorney to set up their living trust, just this isn't a legal requirement. If you make up one's mind to create the living trust without professional person help, make sure to sign the trust certificate earlier a notary public. And then, your parents' assets volition need to be transferred to the trust to fund it. While hiring an attorney is not legally necessary, it is recommended. Especially for complex estate plans.
Related article: What is Trust Accounting for a Trust?
How else can I aid my elderly parents?
Whether you've got a full plate or you live out of country, if you can't provide the financial management and eldercare that your parents need, consider hiring professional help.
Read more than: How Can I Support My Elderly Parents From Another State?
Have Questions?
Marcia L. Campbell, CPA , an experienced CPA who specializes in seniors, provides a variety of eldercare direction services . If you need help with your family'due south finances, delight don't hesitate to contact us or call us at 951-686-3608.
Source: https://mcampbellcpa.com/how-can-i-help-my-parents-set-up-a-living-trust/
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