A living will and a living trust are among the most important legal documents that you will ever make. Both involve end-of-life arrangements so doing them properly is absolutely necessary to avoid any confusion with family members. Documents need to be clear and should contain complete information. But first it is utterly important that you know the differences of a living will and trust. Knowing the coverage of each document would help reduce confusion among other things.
A living will pertains more on the specific health care that you wish to be implemented in the unforeseen event that you are unable to make decisions due to your illness or injury. It is a legal document that pertains to end-of-life decisions. It also can indicate limits on medical and funeral costs so you wont drain your existing resources. You dont want the people you leave behind crippled by debts due to your medical and funeral expenses do you?
A living will which is also known as advance directives for medical decisions covers not only the kinds of medical treatment that you wish to receive but also includes what kinds of procedures or treatments that you dont want to undergo. Common treatments or procedures the document would cover include tube or artificial feeding, mechanical ventilation, the use of antibiotics and resuscitation procedures. One can specifically request that these procedures should not be used in end-life situations. In the same manner, one can also request their medical team to administer all kinds of treatments that can sustain ones life. However, this kind of request is often not as binding as instructing your doctors to not use specific treatments or procedures.
A living will needs to be updated on a regular basis. This is only natural since advancements in the field of health care can change ones perspective. A procedure that you once thought of us too invasive and absolutely necessary might not be anymore due to recent developments in medical science.
So thats a living will. A living trust on the other hand has some similarities with a will. A will as you might know is determines how your estate and property is to be distributed after you die. It takes effect only after the drafter of the will dies. Meanwhile, a living trust is a revocable, tax-neutral directive which can operate even if the maker is still alive and after his death.
A living trust is also not subject to probate proceedings. Probate is the process where the conditions of the will are activated through an executor. A will can specify it wants to go through court supervision or just through an executor. A living trust is not required to go through these legal proceedings. The document remains private even at the time of your death in contrast to a will. In terms of asset management, you can manage your trust assets as long as you are still willing and able. You can also assign a person to be the trustee to take your place. Preparing and managing a living trust is a little more expensive than preparing a will. But since a trust is not subject to probate, you might end up saving some money.
All things considered, these are the differences of a living will and trust. Each one caters to specific concerns in your life, one more on your health care and the other more on your properties and assets.