Why You Should Plan for Incapacity Ahead of Time

Life is unpredictable. A serious illness, accident, or neurological event could leave you unable to make decisions about your assets or health. Without proper planning, your family could face court-appointed guardianship, delays, and uncertainty. To preserve control and minimize disruption, it’s wise to plan for extended incapacity today.

One of the best tools for this purpose is a revocable living trust. At Dana Law Group, we help Arizona residents craft plans that protect their interests and streamline transitions even if they lose decision-making capacity.

What Is a Revocable Living Trust?

A revocable living trust, also called a living trust, is a legal arrangement you set up while you’re alive. You transfer your assets into the trust and remain in control as the trustee. You also name a successor trustee to step in if you become incapacitated or upon your death.

Unlike a will, which only takes effect after death, a living trust provides for management of your assets during your lifetime, especially during periods when you can’t handle them yourself.

Key features include:

• Flexibility: You can modify, amend, or revoke the trust while you’re alive.

• Avoiding guardianship: If you become incapacitated, your trust bypasses the need for court-supervised guardianship.

• Privacy: Assets in a trust don’t go through probate, keeping your affairs private.

• Probate avoidance: Assets pass to beneficiaries without the delays, expenses, or publicity of probate.

Because of these advantages, many families include a revocable living trust in their comprehensive estate plan. At Dana Law Group, we integrate trusts with your will, powers of attorney, and health directives for complete protection.

Steps to Establish a Revocable Living Trust for Incapacity Planning

Below are key steps you and your attorney will typically follow to create an effective plan for extended incapacity.

Inventory Your Assets

Make a thorough list of your assets: real property, bank accounts, investments, retirement accounts, life insurance, business interests, and personal property. This inventory determines what you should transfer into the trust.

Draft the Trust Document

You and your attorney will draft a trust agreement. This document defines who will manage your assets now (you) and who will take over later (your successor trustee). You can also set instructions about how your assets should be used during incapacity—covering daily expenses, medical care, and family support.

Name Successor Trustee(s) and Contingencies

Selecting a trusted person or institution to act as successor trustee is crucial. You may also name backup trustees in case your first choice is unable or unwilling to serve.

Fund the Trust

To make the trust effective, you must transfer ownership of assets into it. Re-title your real estate and financial accounts in the name of the trust. As trustee, you retain full control. Assets not retitled may fall outside the trust’s protection.

Coordinate with Other Planning Documents

Your estate plan should include a durable financial power of attorney, a durable medical power of attorney, and a living will or advance health care directive. These documents work alongside the trust to ensure your wishes are honored if you cannot act for yourself. Dana Law Group includes these essential tools in a comprehensive plan.

Review and Revise Periodically

Life changes—marriage, divorce, new children, or changes in assets—may require trust updates. A revocable living trust offers flexibility, allowing you to adapt your plan as your circumstances evolve.

How a Trust Operates During Incapacity

When incapacity occurs, the successor trustee steps in without needing court approval. The successor trustee:

• Manages and invests trust assets

• Pays your bills, taxes, and living expenses

• Follows the instructions you outlined

• Keeps beneficiaries informed, if required

Because you drafted these instructions in advance, your successor trustee acts according to your wishes. This continuity protects your financial and personal affairs during challenging times.

Common Concerns and Myths

“I’ll lose control if I use a trust.”
Not true. During your lifetime—and as long as you’re capable—you manage the trust assets exactly as before. The trust only shifts authority if you become incapacitated or after your passing.

“Trusts are only for the wealthy.”
Even moderate estates benefit from avoiding guardianship, streamlining transitions, and maintaining privacy.

“It’s expensive and complicated.”
While establishing a trust costs more than a simple will, the investment often pays off by reducing legal costs, delays, and stress for your family later.

“All my assets must go into the trust.”
It’s wise to fund the trust with as many assets as possible, but some—like retirement accounts—may remain outside. Your attorney will guide you on proper structuring.

Why Work with Dana Law Group for Incapacity Planning

Dana Law Group offers experienced estate planning and trust services throughout Arizona. We understand the state’s specific laws governing trusts and property management.

Our attorneys help clients avoid court-appointed guardianships, ease transitions for families, and preserve privacy. We view your trust as part of a holistic plan, coordinating it with wills, powers of attorney, and health directives.

With multiple offices across Arizona, our team provides trusted, local counsel tailored to your needs and peace of mind.

Protect Your Future with a Revocable Living Trust

Planning for extended incapacity is as important as planning for death. A revocable living trust ensures your finances and personal affairs remain guided by your wishes—even when you can’t speak for yourself.

If you’re ready to build a trust strategy that protects your legacy and family, contact Dana Law Group today for a consultation. Let’s create a plan that safeguards your assets and your peace of mind.

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