However morose it may sound, as responsible human beings we must plan for the dimmest future. You may be happy and healthy right now, but that doesn’t mean you are going to be just so forever. One day, like everyone else, you will leave the world, bequeathing your prized possessions to your heirs. Besides mortality, your physical and mental capacity is also not in your control. If you are declared mentally ‘incapacitated,’ your financial decisions will be taken by an appointed ‘guardian.’
When you set up a living trust on Long Island, you allow a trustee to manage, invest, and divide the assets contained in a trust. But because it is revocable in nature, you can choose to modify the trust document whenever you wish, changing the terms or the names of trustees and beneficiaries. This is only possible as long as you are alive. Once you pass away, the trustee retains complete control of the contents.
Besides mortality, your mental capacity is also responsible for determining whether you can control your trust. If you are declared ‘incapacitated,’ all decisions regarding a trust will be taken by the appointed trustee (or substitute trustee) for all intents and purposes. Here’s what it really means.