As the senior population grows, so does the demand for innovative care solutions, including mobile caregiving apps that offer remote monitoring, medication reminders, and communication tools. These apps, while beneficial, come with associated costs, and many individuals are beginning to explore whether estate planning tools like trusts can be utilized to cover those expenses. The answer, as with most legal matters, is nuanced and depends on the type of trust and how it’s structured, but it is indeed possible with careful planning. Understanding the mechanics of trusts, particularly revocable and irrevocable trusts, is key to determining their suitability for funding ongoing care-related expenses.
What are the different types of trusts and how do they work?
Trusts are legal arrangements where a grantor (the person creating the trust) transfers assets to a trustee (the person managing the assets) for the benefit of beneficiaries. Revocable trusts, also known as living trusts, allow the grantor to retain control over the assets and modify the trust terms during their lifetime; these are often used for probate avoidance. Irrevocable trusts, on the other hand, relinquish control to the trustee and are generally used for tax planning or asset protection. According to a recent study by the AARP, approximately 65% of adults over 65 prefer to age in place, driving the demand for services that support this desire. A properly structured trust can designate funds specifically for the ongoing costs of care, including subscriptions to mobile caregiving apps. For example, a trust could allocate a monthly allowance to cover app fees, remote monitoring services, or even in-home care coordinated through the app.
How can a trust pay for ongoing care expenses like app subscriptions?
The trustee, acting within the terms of the trust document, can use trust assets to pay for qualified expenses. This can be achieved by establishing a specific provision within the trust that explicitly allows for the payment of caregiving app subscriptions and related services. The trust document could also outline a process for approving new expenses, ensuring that funds are used appropriately. Imagine a scenario where Mrs. Davison, a proactive planner, included a clause in her trust that allowed the trustee to allocate funds for any technology that supported her continued independence, including mobile caregiving apps. She didn’t want to be a burden on her children and saw these apps as a way to maintain her lifestyle while receiving a level of support that allowed her to remain in her home. A study by the National Council on Aging found that falls are responsible for over $50 billion in medical costs annually, and many caregiving apps include fall detection features, providing a tangible benefit that aligns with trust objectives.
What went wrong for the Henderson family and how could a trust have helped?
Old Man Henderson, a retired engineer, was fiercely independent. He resisted all suggestions of help from his daughter, Sarah. He did, however, embrace a new mobile caregiving app that monitored his activity and alerted Sarah if he fell. The app worked wonderfully for a time, but the monthly subscription fee began to strain his fixed income. He eventually canceled the subscription, fearing financial hardship. One cold November evening, he fell in his workshop and wasn’t discovered for over 12 hours. By the time paramedics arrived, he had suffered a severe head injury. Sarah was devastated, not only by her father’s injury but also by the realization that a small monthly expense could have potentially prevented it. Had Old Man Henderson established a trust with provisions for ongoing care, the app subscription would have been seamlessly covered, potentially averting the tragic outcome. His resistance to planning, fueled by a desire to maintain control, ultimately left his daughter grappling with regret and a difficult situation.
How did the Miller family find peace of mind through careful estate planning?
The Miller family, witnessing the Henderson tragedy, took a different approach. Mr. and Mrs. Miller, both in their early 70s, worked with an estate planning attorney to create a revocable living trust. They specifically designated a portion of the trust assets to cover the costs of mobile caregiving apps, remote monitoring services, and potential in-home care. They selected an app that integrated with their smart home devices, providing a comprehensive safety net. Years later, Mrs. Miller began experiencing mild cognitive decline. The app detected changes in her activity patterns and alerted their daughter, Emily, who was able to intervene early and seek medical attention. The app also facilitated communication between Emily and her mother, providing reassurance and support. The trust ensured that the app subscription and related services were consistently funded, allowing Mrs. Miller to maintain her independence and quality of life. The Miller family found peace of mind knowing that their estate plan was actively protecting their mother’s well-being.
“Estate planning isn’t about death; it’s about life.” – Suze Orman
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
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Services Offered:
- living trust
- revocable living trust
- irrevocable trust
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- wills and trusts
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Map To Steve Bliss Law in Temecula:
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Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “What is the difference between a testamentary trust and a living trust?” Or “What court handles probate matters?” or “What is a successor trustee and what do they do? and even: “Will I lose everything if I file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.