Personal Finance Tip-Living Trusts


Yesterday, one of my Starbucks buddies confided in me that he had just been diagnosed with a brain aneurysm. I sat there in stunned silence for a few moments. He is in is very early forties and works out regularly. I’ve seen him in Starbucks with his eight year old daughter, enjoying time together. I was afraid to ask…He offered that the aneurysm was not malignant. I could breathe again! He went in to great detail about the prognosis and how he had found the top rated doctor in the world to do the procedure. Once he had assured me that he was going to “make it” the financial advisor in me came out. “Do you have health Insurance?” Sorry, but I had to ask because I have had clients wiped out by incidents like this.

Fortunately, he does but the doctor performing the surgery operates out of Stanford, we are in Denver, CO and he will be paying a lot out of pocket. He also has the means to do so. But, it reminded me of so many things that we all need to review periodically including, wills, advanced medical directives and living trusts. The link that I have provided will give you a good overview of living trusts and it is put out by the New York Attorney Generals office-please do review it.

Regardless of age or limited assets a living trust may be appropriate for you.Your assets from your home, cars, brokerage accounts and outside business interests can be included in these vehicles. You don’t own any assets, your trust does, this can have far reaching financial consequences for you (in a good way).

As an example, a friend of mine had a major medical catastrophe, most of which was not covered by his health insurance. The hospital was on him without mercy and ultimately drove him to bankruptcy-with him losing most of his assets besides the fact that he could not work for months! Had he a living trust things could have worked out differently. Take some time and research how this might be a valuable tool for you to consider and please do get professional advice from an estate attorney as I only play one in the blogger world!

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Dansette