An asset management trust can be created to allow someone else (a trustee) to manage all or some of your assets. A Living Trust is an example of an asset management trust. This type of trust is an alternative to using a Power of Attorney in planning for the possibility that at a future time you will not be competent to manage your financial affairs.

In a Power of Attorney arrangement, an agent manages your finances, while in a trust arrangement, a trustee manages your finances. If you have a living trust and you are the trustee, your successor trustee would take over your finances for you if you become mentally incompetent, or if you simply decide that you want the successor trustee to take over.

See ourLiving Trusts section for more information about setting up and administering a trust.