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Palm Springs Law Blog

Wednesday, September 8, 2021

What to Know About Cash Availability Planning

Life is expensive. Money is necessary to help us in our daily lives. That’s why if you become disabled or pass away, your loved one may need to be able to access funds to continue to pay for necessities. But what can you do if all of the money is in your name or in your trust? That’s why cash availability planning is so important.

What Are Your Options?

Cash availability planning is the process of ensuring that your loved one has access to cash when you are disabled or deceased. There are a few options that you can explore to plan for a situation in which your loved one needs money.

1. Open a Joint Signature Bank Account

Your first option is to open up a joint signature bank account. This means that more than one person can sign to receive funds from the account or can use a check or debit card to make payments or withdraw cash. It’s usually best to put enough money into the account so as to be able to pay for up to a month’s worth of standard expenses. By having a joint account, your loved one will be able to access the account whether there is a trust or the will goes through the probate process.

2. Appoint a Co-trustee

If you have a trust, you can also appoint a co-trustee. This individual has the legal right to sign on the bank accounts associated with the trust. However, you would have to include provisions in the trust that would allow for the appointment of a co-trustee as well as which procedures should be used to appoint them. It’s important to note that this would have to be completed while you are alive and have the mental and legal capacity. The only real issue with appointing a co-trustee is that this person would generally have access to all of your trust accounts and the associated funds.

3. Create a Durable Power of Attorney

Another good way to provide access to your money is a Durable Power of Attorney. A Durable Power of Attorney can be used to allow access to the funds in your trust if you become disabled. However, it’s important to note that not all banks allow a Durable Power of Attorney to have access to trust money and the trust must have the proper legal language in order for them to have access. Once you pass away, a Durable Power of Attorney no longer helps your loved one.

Heritage Legal, PC Helps Those in California to Establish a Comprehensive Estate Plan

At Heritage Legal, PC, we understand the importance of protecting your interests and the interests of those whom you care about most. We can help you to create a comprehensive estate plan that fills all of your needs and plans ahead for your loved ones. To learn more or to schedule a free consultation, contact us today!


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