Estate Planning Documents:
Estate planning documents:
A WILL
This is a legal document created by someone that provides instructions and to express their wishes regarding the distribution of their assets after their death. Again, the will does not go into effect until death. If a person dies without a will, they are said to be “intestate”. Therefore, state intestacy laws govern the distribution of the property of the decedent. An executor is named. It is their job to distribute the assets to the beneficiaries according to the wishes of the testator (the person drafting the will). The testator can only choose who they wish to be the executor of their estate. Additionally, they will communicate their wishes on how their asset provisions will be carried out.
You can disinherit a relative whom you do not want to inherit as part of your estate. **Note – it is also the only legal document where you can name a guardian for your minor children. As well as, name the person who you wish to manage their financial affairs until they reach legal age. Also, this legal document can easily be revised as circumstances in your life change. This document only takes care of your assets whereas a living will takes care of yourself.
A LIVING WILL
This is a legal document created by someone to express their wishes regarding what forms of medical treatment they want or don’t want if they are unable to communicate themselves. Or, if they do not have the mental capacity to communicate properly. This is often referred to as an Advance Healthcare Directive. One of the details of living wills often include considerations regarding life-sustaining medical treatments. Also, feeding and breathing tubes to be used. In this document a person names an attorney-in-fact to represent their interests, their wishes and desires. You can state if you have an end-stage condition, you do not want your life to be unnecessarily prolonged.
It is extremely important to understand that a living will is NOT the same as a “Do Not Resuscitate”. This is commonly referred to as a DNR. Every state has its own forms and requirements. Keep in mind that different from a will, a living will is effective as soon as you sign it.
A LIVING TRUST
A living trust is a separate legal entity. It takes legal ownership of property that belongs to someone who created the trust. Unlike a will, a living trust passes property outside of probate court. There are no court or attorney fees after the trust is established. One exception is if the successor trustee wishes to get legal counsel opinion. Your property can be passed immediately and directly to your named beneficiaries. In a simple trust, the person who created the trust is usually the person who will manage the property during their lifetime. This is done in the same way as before and after the trust. If, however, you become incapacitated, the successor trustee can step in easily and manage your affairs. Or, when you die, the successor trustee takes over immediately. All without the need to get court approval.
A trust usually has two types of beneficiaries. One that receives income from the trust during their lives. Another type of beneficiary is one that receives whatever is left over after the first one dies. Unfortunately, you cannot use your living trust to name a guardian or guardians for your young children. This does allow you to state who you want to take care for you and make decisions if a conservatorship is needed.
Estate Planning Documents – what is the difference? The difference is: what is the purpose of the document and what are the wishes of the person.
