What are the types of details that need to be covered in incapacity planning?


Incapacity planning, especially in the revocable trust, which of course deals only with property and money and how it’s to be used, we want detailed instructions to our successor trustee on how to use our assets for our own benefit. Where do we like to live? What are the things that we like to do? What things can be done that would help promote our recovery, or certainly our comfort, during any period of incapacity? Those are the most important issues to address. The issues regarding, pay me bills and pay my valid obligations and help my dependent children, whether they’re adults or minors, that’s always included. But we want to remember, this estate planning is about you.

Note: The Tax Cut and Jobs Act of 2017 signed into law in December 2017 increased the exemption amounts mentioned in these videos. The personal estate, gift, and generation-skipping tax lifetime exemption was increased to $11.18 million per person. The annual gift tax exclusion was increased to $15,000 per donee per year.

Both amounts are indexed for inflation and may increase year over year until December 31, 2025, when the law sunsets and reverts to 2017 values.