Take Your Pick: Living Wills Or Living Trusts
Nobody can really tell what the future holds. Because of this fact, a lot of people have taken measures to make sure that things will turn out as smoothly as possible.
If you want to jump right onto the same bandwagon, then you better be equipped with the right knowledge prior to making that decision. Living wills or living trusts can provide you with that much-needed preparation but you certainly need to learn about these legal documents before you could actually take your pick.
Living Wills Vs. Living Trusts
If you want to know which legal document is more appropriate for you, you first need to find out the coverage of living wills or living trusts. Since they’re both legally binding, every adult person should almost certainly know how each could be of assistance to them in the future. In order to properly pick your choice, you have to know their differences.
A living will is a legal document that discloses a person’s wishes concerning health care. Its contents will only be effective once the maker falls into an incapacitated state wherein he or she is no longer capable of conveying his or her decisions.
The directives contained within it usually indicate one’s desires not to receive treatment or be kept alive by means of artificial life support measures.
Once you’re in an incapacitated condition, your family will have to make all the health care decisions for you. Aside from that, they will have to put up with the financial burden of your hospitalization. By restricting medical treatment, a living will could keep a tight rein on hospital expenses that could use up or even totally exhaust all your family’s remaining funds.
On the other hand, a living trust – also known as inter vivos trust – is a legally binding document that is drawn up for the purpose of controlling ownership to a person’s assets in his or her entire lifetime, and for allocating those properties after death.
The creator or the grantor may also appoint a trustee who will implement the terms indicated in the living trust in case he or she becomes incapacitated or unwilling to perform the duty.
In comparison to a will, the grantor does not necessarily have to pass away for the living trust to take effect. As the name implies, this legal document is effective during the creator’s lifetime.
A living trust however is only recommended for people who own a considerable amount of assets and finances. In other words, the necessity to create one is largely dependent on your circumstances, financially speaking.
If still haven’t decided which type of legal to choose, you might as well pick both for as long as the two are applicable to your needs and circumstances.
The obvious similarity is in the financial aspect. Living wills make it possible for you to save your family from all the trouble of paying for enormous hospital bills, provided that your medical condition appears to be beyond any possibility of recovery. On the other hand, living trusts lay emphasis on the need to properly manage your assets according to your preferences.
On the whole, living wills or living trusts make it possible for you to put things in order while you still can. Also, both legal documents allow you to prepare for the inevitable and the unknown.