It is quite common for most of us to get confused between living will and trust, especially as both terms sound very similar. However, living will and trust are each a vital tool for proper estate planning and each serves its own distinct purpose. A living will is all about informing healthcare providers and family members about what you want them to do in case you become terminally ill or are otherwise incapacitated to a degree that you are no longer in a position to communicate with the world at large.
Information About Living Will And Trust
On the other hand living trusts are documents in which you spell out the way that you want your property transferred to your beneficiaries. This means that at first glance it is abundantly clear that a huge difference exists between living will and trust. What’s more, the living trust is very dissimilar to a will in that in that it is not subject to probate courts that would under certain circumstances force your beneficiaries to have to spend thousands of dollars and many years to get a decision from the courts.
Other points of differences between a living will and trust include that in the former document you can spell out how to deal with your mortal remains once you have breathed your last while the living trust is all about the details about what you wish to do with your estate and these details can be kept private at the express desire of the maker of the living trust.
Furthermore, a living will and trust differ in that a living will includes the facility of free healthcare Power of Attorney whereas the living will can include a free last will. In addition, both a living will and trust differ in that a living trust can help in reducing certain kinds of estate taxes whereas the living will is about making decisions regarding life support and the instructions in this regard are spelt out well in advance of the actual event taking place.
A living will and trust also differ in that the former can assign a successor trustee to ensure that your instructions regarding your estate are followed whereas the living will require creating a Power of Attorney who will then be entrusted with making decisions regarding your medical treatment in case you become incapacitated.
It certainly makes sense to create a living will. Such a document helps everyone whether they are rich or poor and to be more effective the living will must include certain points. In this regard and to ensure that you create a useful living will it pays to consult a living will attorney who understands the applicable laws and also taxes across states in America. The attorney can also explain what kind of wording should be used that will ensure that your wishes are executed according to your express desires.