When you create a revocable living trust, you create an entity that can legally own property. After transferring some or all of your property to the trust, you can direct the trust to transfer the property to new owners after you die without the necessity of having to go through probate.
But living trusts also offer you the opportunity to appoint someone to manage the property should you become incapacitated. Here’s how it works.
When you create a revocable living trust you have to appoint someone who will act as trustee. The trustee manages the trust property and does so in accordance with the terms you establish upon creating trust. Many people who have a living trust choose themselves as the trustee. But, should you become incapacitated, someone will have to step in and take over the trustee’s responsibilities.
If you lose your ability to manage your trust, someone else will have to step in. This is the successor trustee.
Successor trustees are important because they prevent needless complications arising should you become incapacitated. For example, if you’re hospitalized after a car accident, the successor trustee can quickly step in and manage your financial affairs. If you don’t have a successor trustee named, or haven’t placed your property in a living trust, it might fall to a court to appoint someone to manage your affairs for you. This can be costly and time-consuming, but it’s easily avoided by creating a living trust.