This is an agreement between three parties: the trust-makers, the trustees (or trust managers), and the trust beneficiaries. For example, a husband and wife may name themselves all three parties to create their trust, manage the assets transferred to the trust, and have full use and enjoyment of the trust assets as beneficiaries. Further, “back-up” managers can step in under the terms of the trust to manage the assets should the couple become incapacitated or pass away. Special provisions in the trust also control the management and distribution of assets to heirs in the event of the trust maker’s death. With proper planning, the couple also can avoid or eliminate death taxes on their estate. The revocable living trust may allow them to accomplish all this outside of any court proceeding.

These allow you to appoint someone you know and trust to make your personal health care and financial decisions even when you cannot. If you are incapacitated without these legal documents, you and your family will be involved in a guardianship or conservatorship case. This is the court proceeding where a judge determines who should make these decisions for you under the court’s ongoing supervision