Actuator systems are employed widely in aerospace, transportation and industrial processes to provide power to critical loads, such as aircraft control surfaces. They must operate reliably and accurately in order for the vehicle / process to complete successfully its designated mission. Incipient actuator failure conditions may severely endanger the operational integrity of the vehicle / process and compromise its mission. The ability to maintain a stable and credible operation, even in the presence of incipient failures, is of paramount importance to accomplish “must achieve” mission objectives. This paper introduces a novel methodology for the fault-tolerant design of critical subsystems, such as an ElectroMechanical Actuator (EMA), that takes advantage of on-line, real-time estimates of the Remaining Useful Life (RUL) or Time-to-Failure (TTF) of a failing component and reconfigures the available control authority by trading off system performance with control activity. The primary goal is to complete critical mission objectives within a time window dictated by prognostic algorithms so that the fault mode is accommodated and an acceptable level of performance maintained for the duration of the mission. The proposed fault-tolerant control design is mathematically rigorous, generic and applicable to a variety of application domains. An EMA is used to illustrate the efficacy of the proposed approach.