How Trusts for Elderly Parents Help Manage Their Finances

Taking control of elderly parents’ finances is complicated, to say the least. From ensuring they maintain eligibility for benefits and long-term care to generating income and paying their bills, this is a full-time job that requires considerable expertise and experience only a professional fiduciary has. Fortunately, trusts for elderly parents are prime solutions.

At Marcia L. Campbell CPA, we have helped seniors for decades maintain their dignity and independence while ensuring they are financially secure for decades working with clients and their attorneys to set up trusts and manage them. Learn more in our blog.

How Trusts for Elderly Parents Help Manage Finances

A living trust in California is one of the best tools available for those interested in managing elderly parents’ finances.

“Different Living Trusts exist to help seniors. These trusts have several benefits, like minimizing taxes, avoiding probate costs, and protecting seniors from fraud.”

– Marcia L. Campbell, Professional Fiduciary, Marcia L. Campbell CPA

Testamentary Trusts

Testamentary Trusts are common trusts for elderly parents when one spouse dies. With this trust, assets from the deceased transfer into the trust and the trustee manages assets, protecting them from mismanagement and financial elder abuse.

The professional fiduciary helps the surviving senior create income from assets they have by selling them, investing them, or capitalizing on tax benefits.

Revocable Living Trusts

Revocable living trusts for elderly parents safeguard seniors by making it more difficult for non-trustee family members to access and mismanage the money and assets held in the trust. The senior can serve as the trustee and change or revoke the trust at their discretion.

People create a living trust in California to help the senior maintain control of assets by serving as the trustee and beneficiary, and they can appoint a successor trustee or someone else to manage their assets.

Related Article: How to Set Up a Living Trust in California

Irrevocable Living Trusts

An irrevocable living trust, on the other hand, is a type of California living trust that the person who created it cannot change or revoke. Essentially, they forfeit their direct control of assets and finances once they enter the trust.

Irrevocable living trusts are ideal for when the senior is eligible for Medicaid. Maintaining eligibility and eligibility for other long-term care benefits without having to dispose of assets is common for those wondering how to manage elderly parents’ finances.

Once assets are in an irrevocable trust, they will not factor into Medicaid eligibility. This living trust can provide income for seniors and their spouses while protecting their property and other assets from being seized without impacting eligibility for Medicaid.

Find a Professional Fiduciary for Help Setting Up a Living Trust in California

Regardless of what kind of living trust you set up, hiring a professional to guide you through this process is crucial to ensure legal compliance and correctness when creating living trusts for elderly parents to prevent severe complications in the future. Fortunately, at Marcia L. Campbell, we can help.

Visit our Contact Us page and fill out the contact form to schedule a consultation to set up a Living Trust, manage your senior loved ones’ finances, help them maintain their independence, and provide everyone with peace of mind.

951-686-3608