What kinds of contingencies should I plan for in my revocable living trust?
Your revocable living trust should carry out your wishes based on your current situation in life, but it should also be flexible enough to account for potential unexpected events. Here are some of the things that one might consider:
- Death of a child or other family member
- Incapacity of a child or other family member
- Birth of additional children or other family members
- Possibility that a beneficiary may be suffering from substance abuse
- Possibility that a beneficiary may have creditors
- Possibility that a beneficiary might be a victim of fraud or undue influence
- Possibility that a beneficiary may be relying upon special government assistance
By taking precautions to think through these possibilities, one may be able to avoid the need to amend his or her estate planning documents by incorporating provisions to deal with these contingencies.