What is a revocable trust?
A revocable trust, also known as a living trust, is a legal agreement in which property is held in trust for an individual’s benefit. Under California disability planning law, a revocable trust allows individuals to determine how their assets will be managed if they become incapacitated. This is especially important for individuals with disabilities, as they may not be able to manage their assets in their own best interests without assistance. Through a revocable trust, the individual (or trustor) can appoint someone else (a trustee) to manage their assets in the event that they become disabled or incapacitated. The trustor retains control of the assets in the trust, including the ability to change or revoke the trust at any time. However, should the individual become disabled or incapacitated, their appointed trustee can manage their assets according to the trustor’s instructions. Revocable trusts can also provide for the individual’s long-term care needs, such as the payment of medical expenses, the appointment of a guardian if the individual is unable to make decisions, or the distribution of assets to other beneficiaries, such as family members. In California, disability planning law is designed to ensure that individuals are able to make decisions about their finances in the event that they become unable to do so on their own. A revocable trust is a key element of this law and can provide individuals with peace of mind that their assets will be managed according to their wishes.
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