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In case you are somehow
confused about a living will, a will, and a living trust, you should
understand that these three concepts are separate and are different
from each other. It is time you realize that a living will is not a
will, nor is it a living trust. You do not need to be a licensed
lawyer to be able to tell the difference and the basic coverage of
each. This article would definitely help you make the discernment.
To begin with, a living will, a will, and a living trust all are
significant tools used in estate planning (the process of planning for
future management of assets of a person’s estate in case of
incapacitation or death). As mentioned, all three serve different and
significant individual functions. Any person who is planning to take
one or all of those three should appropriately consult a lawyer or a
qualified professional prior to coming up with any important decisions
about documents to use.
There is a huge difference between a living will and a last will and
testament. In particular, a living will is an authorized and legally
binding directive to healthcare providers or doctors to either
implement/ apply or prevent/ withhold any specific life-sustaining
treatment or procedure in case that person gets terminally ill or
experiences an irreversible health condition that would certainly
require tedious and incessant life support. The living will would name
a person who would be assigned to act as the Medical Power of
Attorney. That assigned person would decide and receive private
medical data about the patient. In this way, the living will becomes a
strategy to curtail or control medical, hospital, and even funeral
costs that could easily dry up or drain as estate.
On the other hand, a last will (more popularly known simply as ‘will’)
is also a legal document that is duly signed by a person in the
presence of a legal witness who describes how that person wishes his
assets and wealth to be divided by family and descendants upon death.
The will is also containing a designation of a person who is legally
authorized to administer every personal affair upon death of the
person (or estate owner). The designated person is a lawyer also
called an Executor. Most opulent people are advised to have a will at
hand. In fact, some wealthy individuals start to write their will
early in life and subject that testament to numerous modifications and
changes as time goes on.
The living trust is mostly considered as an alternative to will or
last will. It also details distribution of estate of a person during
and beyond his lifetime. The owner of the estate designates a trustee
to manage all his declared assets, which would then be automatically
transferred into the possession of the trustee. Thus, in a living
trust, the person or estate owner need not be dead for the assets to
be turned over to other people.
Overall, will and living trust involves a person’s assets while a
living will mainly involves health factors.
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