Do You Have a Living Will or a Living Trust?

Maybe both! Many people are very confused by these two documents and their purposes. That is probably a lawyer’s fault. Whoever decided to name the “living will” most assuredly went on to regret the name. Living wills and living trusts serve two entirely different purposes.

At Parman & Easterday, all of our clients have a living will, also known as an advanced healthcare directive. We call it both, so nobody misses the point. A living will is a document that allows you to explain your wishes regarding life sustaining procedures you do not want in the event that your health becomes critical. It comes into play when, and only when, you are unable to make your own medical wishes known. Specifically, the living will is used when you have an incurable illness, are in a terminal condition (as determined by two doctors), and when any medical procedure would not do anything but artificially prolong your life. In this situation only, it allows the person with the authority to make health care decisions on your behalf to refuse such procedures. The living will document provided to you by Parman & Easterday is less than one page, and it elaborates a bit more if you want to give it a read. Make sure you know who is designated as your healthcare agent, that is, who uses your living will.

A living trust is different completely. A living trust is a “box” created to hold title to your assets. If you have a living trust you likely did it for one (or more) of the following reasons: 1) to avoid the costs and time associated with probate, 2) to keep things simple for your heirs, 3) to control how your assets are distributed at your passing, or 4) to make sure your assets are easily accessible and properly used if you are ever incapacitated. Why the word “living”? The word simply means you created the trust and it is fully in existence while you are living, it does not start working just when you pass. Make sure you know who you picked as your successor trustee; it is their job to make your trust plays out the way you intended.

If you have any questions about your living will, living trust, or any other estate planning documents please give us a call, that is why we are here.