Financial Planner

Answer: C - An individual that wants a trust in which the management and distributions of terms are very detailed and would override any authority over trust property would be better off with a living trust. Living trusts assure that the transactions will be accomplished: although some third parties may not recognize the authority of an agent under a durable power of attorney, the trustee’s power to act according to the trust agreement must be honored (although most states will not compel a third party to follow the directions of an attorney, in fact, states generally will compel others to recognize a trustee’s authority over trusts property. Additionally, the management and distribution of terms are usually more detained in a trust. However, a trust is more costly to create and maintain.