‘My Mom Is in the Hospital — Can I Pay Her Bills?’
J.M. ANSWERS A CRITICAL QUESTION A few months ago, our client’s daughter, whom I’ll refer to as “Valerie,” received distressing news. Her mother, “Sue,” had suffered a severe stroke and fallen into a coma. Valerie rushed to her mother’s side at the hospital, where the doctors explained that they couldn’t predict when Sue might awaken. It could happen the next day, or she could remain unconscious for months. Valerie was overwhelmed with fear for her mother’s well-being and desired to be there for her throughout the recovery process. However, the reality hit her hard — Sue had financial obligations to fulfill. In a panic, Valerie called our office, hoping against hope that we could assist her. We arranged a meeting for the next day to address Valerie’s concerns. “J.M.,” she said, “my mom is sick, and nobody knows when she’ll recover. She has upcoming bills, such as property taxes, mortgage payments, and insurance. I need to support her in the hospital and ensure these payments are made. Can I access her bank accounts?”
signatures from two different doctors (who are often reluctant due to medical privacy laws), submitting the doctors’ notes and a copy of the Trust to the banks, and waiting for their legal departments to process the new information. Knowing that informing Valerie she couldn’t stay by her mother’s side in the hospital would devastate her, I was relieved to have a different answer. “You can remain exactly where you are, Valerie,” I reassured her. “When your mom established her Trust, we advised her to appoint you as a Silent Partner Co-Trustee. Consequently, her banks and financial institutions are already familiar with your role. You can immediately endorse checks, pay bills, transfer funds, and manage all of her financial matters.” As I spoke, it all came rushing back to Valerie — she remembered working with her mother to become a Silent Partner Co-Trustee years ago. By the time our meeting ended, I could hear a bit of relief in her voice. I hope you’re never in Valerie’s situation. But if you are, you can focus your attention on your loved one knowing that as a Life Plan member, we have set up your Trust in the best way for your family.
As I listened to Valerie’s worried voice, I felt grateful that her mother had chosen Preston Estate Planning to establish her trust.
If Sue had settled for the industry standard when establishing her trust rather than engaging our services, I would have had to deliver unfortunate news to Valerie. I would have said, “I’m sorry, Valerie, but you can’t handle those bills from the hospital. Your mom is the sole Trustee of her Trust, granting her exclusive access to her funds. As a Successor Trustee, your role is contingent upon providing written proof of her incapacitation. You would then need to personally visit each of her banks and financial institutions, carrying that proof with you. Finally, if you’re fortunate, you might gain access to her accounts after several weeks.”
–J.M. Preston
This traditional estate planning standard results in situations that are both stressful and time-consuming. It involves acquiring
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