It can be difficult to watch an aging loved one struggle with physical or cognitive decline. New risks and challenges can arise for your aging loved ones, generating many questions and the need to take care of specific planning steps. Financial security could become problematic for a loved one who is no longer able to clearly think for themselves or who may be subject to exploitation from someone else.
Even with an estate plan including a will and a revocable trust, there’s still the possibility that an aging loved one could be influenced to change or eliminate these documents by someone else. One way to help guard against this is to consider the creation of an irrevocable trust. This helps prevent against undue influence or any unauthorized changes that could subject your loved one to unnecessary risk or even fraud. An irrevocable trust is not subject to amendments or changes after it has been established. This protective power is a core feature of the unchanging nature of an irrevocable trust.
An irrevocable trust allows your loved one to document their wishes now to protect against someone trying to take advantage of them in the future.Â
Creating a trust under the right conditions is crucial, however. If someone does not have the legal capacity to create a trust or fully understand what they are creating, it could be argued that the trust is not a valid document. An irrevocable trust should be created with the help of an estate planning attorney in Pasadena when your loved one is still of sound mind. This can provide certain tax benefits with appropriate provisions drafted by a lawyer, preserve your loved one’s assets such as investments, bank accounts, and real estate, and can even protect against undue influence.
For further information about how to use an irrevocable trust in the estate planning process, contact our law firm in Pasadena today.
