A living will and a living trust are two distinct legal documents serving different purposes:
Living Will
- A living will is a medical document that provides instructions about your healthcare preferences if you become unable to communicate them yourself. It guides medical providers and loved ones on what types of medical treatment you want or do not want, such as life support or resuscitation measures
Living Trust
- A living trust is an estate planning tool created during your lifetime to hold and manage your assets. It names a trustee (which can be yourself) to manage the assets for your benefit while you are alive and for your beneficiaries after your death.
- It directs how your assets are to be managed and distributed, potentially avoiding the probate process, which is the court-supervised procedure that wills must go through after death.
- Living trusts can be revocable (you can change or revoke them during your lifetime) or irrevocable (generally cannot be changed once established).
- A living trust takes effect immediately upon creation and funding, allowing for management of assets during incapacity and after death
Key Differences
Aspect| Living Will| Living Trust
---|---|---
Purpose| Medical care instructions| Asset management and distribution
Takes effect| When you are incapacitated and unable to communicate|
Immediately upon creation and funding
Governs| Healthcare decisions| Financial assets and estate distribution
Probate| Not applicable| Avoids probate for assets in the trust
Control| Specifies medical wishes| Names trustee to manage assets
In summary, a living will directs your medical care preferences if incapacitated, while a living trust manages your assets during your life and after death, often helping to avoid probate and providing privacy and control over your estate
