Summary
A Revocable Trust in California allows immediate access to funds by the trustee, avoiding potential delays associated with a Durable Power of Attorney (DPOA). A DPOA may require additional documentation from financial institutions, which can cause delays. If you trust your appointed agent completely, an immediate DPOA can be beneficial, allowing them to manage your affairs without waiting for proof of incapacitation. However, its important to carefully draft the DPOA to align with your estate planning goals. In terms of taxes, your daughter, as your agent under a DPOA, is generally not responsible for taxes unless she misuses the funds for personal gain. For specific advice, consulting with a tax professional or attorney is recommended.Full Conversation
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Certainly! Here's some more detailed information:
- Revocable Trust:
- Allows the trustee to manage and distribute assets immediately upon incapacitation.
- Typically avoids probate, ensuring quicker access to funds.
- Can be more complex to set up initially.
- Durable Power of Attorney (DPOA):
- Allows the appointed agent to manage finances, but may require additional documentation from financial institutions.
- Generally easier to establish.
- May face delays if institutions request verification or additional paperwork.
Would you like assistance with setting up either option?
I have both. I want to put my non IRA money into the Trust OR DPOA in case of my incapacity. I want to know which will be 'easiest and fastest', for my daughter to be able to access the money.
In California, placing non-IRA money into a Revocable Trust is typically the easiest and fastest option for immediate access in case of incapacitation. The trustee can manage and distribute assets without delay, while a DPOA may face potential verification or documentation issues with financial institutions.
Is it ever wise to have a DPOA that allows immediate access, even if not dead or sick. I trust my daughter with my life. I do no believe she would ever access without reason.
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Having a DPOA that allows immediate access can be wise if you trust the appointed agent completely. It enables your daughter to manage your affairs without waiting for proof of incapacitation. However, it's crucial to weigh the potential risks and ensure the DPOA aligns with your intentions. Would you like more information on how a DPOA could affect your estate planning?
Yes on how a dpoa could affect estate planning
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A Durable Power of Attorney (DPOA) can significantly impact estate planning in California:
- It allows the appointed agent to manage your financial affairs, potentially simplifying asset management and avoiding court intervention.
- A DPOA can ensure continuity in handling your estate if you're incapacitated.
- It's important to draft it carefully to align with your estate planning goals and intentions.
If you need more information or specific guidance on drafting a DPOA, feel free to ask!
I have a Trust, with my house in it. That was the main goal. I was going to leave all of the cash. Small amount $*,* as of now. It will get lower as I spend living expenses. I am currently retired. Half is IRA's with POD's on them. I just didn't think really much about if I were to become incapacitated. I have a DPOA but it doesn't take affect until, I am incapcitated, the same with the Trust. I just worry because my daughter does not have enough income to pay my bills. The money would need to be accessed quickley.
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It's wise to ensure quick access to your funds. Here are some considerations for California:
- Revocable Trust: Immediate access by trustee, avoiding potential DPOA delays.
- Immediate DPOA: Allows your daughter to manage finances without proof of incapacitation, if you trust her fully.
Would you like to explore modifying your DPOA or Trust to better suit your needs?
In real time 'time' revocable trust takes how long to access the money. How long does it normally take to get * doctors to sign needed papers?
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In California, funds in a Revocable Trust can be accessed immediately by the trustee upon your incapacitation, assuming the trust is properly set up. Obtaining two doctors' signatures for proof of incapacitation varies but usually takes a few days to weeks depending on their availability. Do you have any other questions about estate planning?
I my daughter has immediate access to my money with the DPOA is she responsible for taxes or anything?
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If your daughter is acting as your agent under a Durable Power of Attorney (DPOA), she generally isn't responsible for paying taxes on the money unless she misuses it for personal gain. The responsibility for taxes remains with you as the principal. If you need more specific advice, consulting with a tax professional or attorney is recommended.
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