No one likes to think about the possibility of not being able to manage their own affairs. Still, accidents and illnesses do happen. If you worry about who would manage your assets if you couldn’t do it yourself, then you might want to consider
a revocable living trust.
What It Is
When you establish a revocable living trust, you transfer ownership of some or all of your assets to the trust and name yourself (and perhaps your spouse) as the primary beneficiary. You also name a trustee. As with any trust you create, you specify in
the trust agreement how the trust property is to be managed and distributed. Because the trust is revocable, you can change or terminate it at any time. Upon your death, the trust assets do not go through probate.
How It Helps
When you set up your revocable living trust, you arrange for the management of your assets if you become incapacitated. In the event of your disability, your trustee or a co-trustee or successor trustee can make investment decisions and handle other financial
matters for your benefit. This arrangement avoids the expense and complications of a court-ordered guardianship or conservatorship. And you have the peace of mind of knowing that your affairs will be handled as you directed.
Funding It
When you set up your revocable living trust, you can either fully fund it immediately or give your successor trustee a durable power of attorney to transfer assets to the trust if you become disabled. You also can have the trust continue after your death
to provide asset management for your family. In that case, you might consider including a "pour-over" provision in your will directing that your remaining assets be transferred to the trust.
Our Personal Trust Officers can help you figure out if a revocable living trust is right for your situation. Call us at 866.238.0082.
First Merchants Private Wealth Advisors products are not FDIC insured, are not deposits of First Merchants Bank, are not guaranteed by any federal government agency, and may lose value. Investments are not guaranteed by First Merchants Bank and are not insured by any government agency. This material has been prepared solely for informational purposes. First Merchants shall not be liable for any errors or delays in the data or information, or for any actions taken in reliance thereon. Any views or opinions in this message are solely those of the author and do not necessarily represent those of the organization.
