QUESTION
Does disabled and incompetent include death?
Asked on Mar 12th, 2017 on Estate Planning - California
More details to this question:
In my trust, it state "disabled" or "incompetent" refer to a physical or mental inability to carry one’s usual financial affairs, the successor trustee may determine settler condition to handle affairs. This did not say if the settler is "dead" then successor trustee can handle the affairs. Is this a problem?
2 ANSWERS
No, as being dead clearly falls within the two situations. But the successor trustee should not be involved unless the original trustee refuses or can not act. I assume you are the initial trustee so are wondering what happens if you die. Remember, only property in which the title of ownership has been transferred into the Trust is distributed according to the Trust, otherwise it goes by the person's Will. There are some good books by Nolo Press explaining Trusts that you should read in order to know what questions you need to ask.
Answered on Jun 03rd, 2017 at 6:42 AM
Disabled and incompetent are different than death but I doubt the trust is invalid. Have an attorney review the trust.
Answered on Jun 03rd, 2017 at 6:42 AM