Medical Emergencies And Unforeseen Events
When planning for medical emergencies or unforeseen events in a trust, flexibility is key. You can’t predict future costs or know exactly what your estate will be worth when the time comes, so setting aside a fixed percentage or dollar amount isn’t always the best approach. Instead, it’s better to give the trustee discretion while also providing clear guidance on your intent.
A well-drafted trust should make it clear that funds can be used for medical emergencies or other critical needs as they arise. At the same time, it should include instructions that help the trustee understand your priorities, whether that’s ensuring medical care, covering unexpected expenses, or maintaining quality of life. This way, if medical issues end up being more significant than expected, the trustee has the flexibility to direct more resources toward them. If they don’t come up, those funds can still be used for other meaningful purposes, like enhancing your beneficiary’s life in other important ways.
Providing For Higher Education And Living Expenses
One of the great things about trusts is that you can use them to cover education and living expenses if your child decides to go to college. You can include specific provisions in the trust document or provide instructions to guide the trustee. Instructions aren’t legally binding, but they can clarify your intent and help prevent disputes over how funds should be used.
Many trusts use a standard known as HEMS Health, Education, Maintenance, and Support. This standard is well-established in legal cases, making it clear what expenses are allowed. Under this framework, the trustee can pay for tuition, textbooks, and even necessary equipment like a computer for coursework. It also ensures coverage for health needs, housing, and other essential living expenses so that your child has the resources to maintain a good quality of life while in school.
Trusts are flexible, so you can tailor these provisions based on your specific wishes. But by using the HEMS standard, you give your trustee clear legal backing to provide the right support while keeping everything aligned with your overall estate plan.
Rebecca Sommer of The Law Office of Rebecca Sommer in California is a trusted estate planning attorney with extensive experience helping families prepare for medical emergencies, unforeseen events, and future financial needs. Her personalized approach ensures trusts are designed with the flexibility to adapt to changing circumstances while safeguarding beneficiaries’ well-being.
Rebecca has guided many clients through these intricate processes, providing peace of mind for their loved ones’ futures. Contact her today to start building a trust that protects your family’s legacy and unique priorities.
Changing The Terms Of A Trust
You can change the terms of the trust, assuming it is a revocable trust. This flexibility allows you to update it as your child’s needs evolve. However, instead of making constant legal changes, I often recommend building flexibility into the trust document itself and supplementing it with a letter of instruction.
A letter of instruction lets you provide specific guidance to the trustee without requiring formal legal amendments. For example, in one year, you might highlight the importance of a particular therapist or educational approach, but as circumstances change, you can update that letter without needing an attorney. This keeps things adaptable and ensures your child’s needs are met without unnecessary legal costs.
For parents of special needs children, minors, or even pets, regularly updating this letter, ideally once a year, helps ensure the trust stays aligned with your wishes. It provides clarity, minimizes confusion, and allows for a smooth transition of care without making the trust overly rigid.
Supporting Future Grandchildren
A trust can absolutely support future grandchildren if your child doesn’t use all the funds. Many trusts are designed to prioritize children first and then pass assets to grandchildren. This structure ensures long-term financial security for your family while maintaining control over how assets are distributed.
One key advantage of using a trust is protection from potential government clawbacks. For example, if you or your child receive Medi-Cal benefits, assets held in a properly structured trust can avoid estate recovery claims. Similarly, a third-party special needs trust can protect assets from being taken by the government after your child’s passing, ensuring that any remaining funds can be passed down to grandchildren or other beneficiaries.
Still Have Questions? Ready To Get Started?
For more information on Planning For Uncertainty, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (657) 571-1241 today.
Rebecca Sommer of The Law Office of Rebecca Sommer in California is a trusted estate planning attorney with extensive experience helping families prepare for medical emergencies, unforeseen events, and future financial needs. Her personalized approach ensures trusts are designed with the flexibility to adapt to changing circumstances while safeguarding beneficiaries’ well-being.
Rebecca has guided many clients through these intricate processes, providing peace of mind for their loved ones’ futures. Contact her today to start building a trust that protects your family’s legacy and unique priorities.
