Trust MattersEstate Planning with Trusts: Protect Yourself While You’re Alive
Trust Matters
Estate Planning with Trusts: Protect Yourself While You’re Alive
Last reviewed August 14, 2026
Can a revocable living trust protect you during incapacity?
A properly prepared and funded Arizona revocable living trust can allow the successor Trustee you selected to manage trust assets if you become unable to manage them. Unlike a will, a revocable living trust operates during your lifetime and can provide continuity for your finances, property and investments.
What Happens If You Can't Manage Your Money?
What happens if you are alive—but you can no longer manage your money, your home or your investments?
Who pays your bills?
Who manages your property?
Who makes sure your financial life continues?
Most people think estate planning is about death.
It isn't.
Good estate planning protects you while you are alive.
That is one of the most important reasons I recommend estate planning with trusts.
A Will Is Not Enough
A will tells everyone what you want to happen to your property after you die.
But what happens if you are still alive and cannot manage your affairs?
A will cannot help you because it only becomes effective after your death.
A revocable living trust works during your lifetime. You generally remain in control of the assets in your trust while you are able to manage them yourself.
Think of it this way:
Your trust is for you first. Your beneficiaries come second.
You Stay in Control
The best person to manage your affairs is always you.
With a revocable living trust, you can generally serve as your own Trustee. You can buy and sell property, manage investments, collect income and pay your bills.
Your life continues as usual.
You remain in control.
For federal income-tax purposes, a typical revocable living trust is generally treated as a grantor trust while the person who created it retains control. This generally means the trust's income continues to be reported by the person who created the trust rather than creating a separate income-tax system simply because the trust exists.
For more information, see the IRS guidance on Grantor Trusts.
Imagine This Happens Tomorrow
Suppose you become seriously ill and are hospitalized.
You are alive, but you cannot manage your finances.
The mortgage still needs to be paid. Insurance premiums are still due. Investments still need attention. Your property still needs to be managed.
Who takes care of everything?
With a properly prepared and funded trust, the person you chose as your successor Trustee can step in and manage the trust assets according to the terms of your trust.
You made that decision while you were healthy and able to choose.
That is what good estate planning gives you:
Control.
What About Dementia?
Almost every client I have ever had thinks about death.
Far fewer think seriously about incapacity.
Dementia, serious illness, accidents and other medical problems can leave someone alive but unable to manage financial affairs.
By the time incapacity occurs, it may be too late to create the plan you wanted.
Planning ahead lets you choose the people you trust before there is a crisis.
Trusts Aren't Just for Millionaires
You don't need millions of dollars to want control over your own affairs.
You don't need millions to want someone you trust handling your finances if you become incapacitated.
And you don't need millions to want to make life easier for your family.
A revocable living trust can be an important part of an Arizona estate plan for ordinary families with ordinary assets and ordinary concerns.
Don't Wait for the Crisis
Estate planning isn't simply about deciding who receives your property when you die.
Ask yourself:
Who controls my property while I am alive?
Who will manage my finances if I cannot?
Who have I chosen to help me?
Those questions matter today—not someday.
Your estate plan should protect you first.
In Part Two, we'll look at what happens after death and how a properly prepared trust can help protect your family, avoid probate and preserve what you worked so hard to build.
If something happened to you tomorrow, would your plan work today?
Frequently Asked Questions About Arizona Revocable Living Trusts
Does a will manage my finances if I become incapacitated?
A will generally controls how property is handled after death. It does not authorize someone to manage your financial affairs while you are alive.
Can I control assets placed in my revocable living trust?
Generally, yes. You can usually serve as your own Trustee and continue managing the trust assets while you are able to do so.
Who manages the trust if I become incapacitated?
The successor Trustee you selected may manage the trust assets according to the trust terms and its procedures for determining incapacity.
Does a successor Trustee control everything I own?
Not necessarily. A successor Trustee generally manages assets owned by the trust. This is why properly funding the trust is an important part of the planning process.
Are revocable living trusts only for wealthy families?
No. A revocable living trust may help people who want continuity, control, incapacity planning, privacy or an easier process for their families.
Authoritative Resources
Speak With an Arizona Estate Planning Attorney
If you are unsure whether your current estate plan would protect you during incapacity, Ilene can help you review your documents, trust funding and planning goals.
Schedule an Estate Planning Consultation