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What happens to my Trust if I am incapacitated?

Authored by:

Dave Schleiffarth

David has been practicing law since 2019 provides guidance and unique solutions to cusomers with their Estate Planning, Wills, Trusts, Speciall Needs Planning and Business Formation.

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A well-drafted Trust contains many safeguards and instructions for what should happen if the Trust’s creator becomes incapacitated.

Regardless of age, health, or mental capacity, the creator of a Trust remains the primary beneficiary while alive. (Or co-beneficiary, in the case of married couples).

If you are not physically or mentally well, your successor trustee can step in and manage your assets on your behalf. However, no distributions are made to beneficiaries until the creator is dead.

Additionally, if you have decided to resign as Trustee or experience a period of incapacity, you may be later reinstated, as Trustee, if you wish. While you are alive, your Trust is for your benefit alone. If you are not acting as Trustee for any reason, your successor Trustee has a legal obligation to act in your best interest.

For married couples, if one spouse is incapacitated (or dies), the other spouse continues as the sole Trustee.

(It is worth noting that Trusts are highly flexible documents organized in numerous ways. The above outlines a standard design for a Revocable Living Trust under Missouri law).