The Difference Between A Living Will And Will
Many Americans believe estate planning is synonymous with just having a will. However, estate planning encompasses much more than simply drafting a will. It involves evaluating your priorities, implementing strategies, and preparing legal documents to protect your assets and ensure your wishes are fulfilled.
Here’s a breakdown of the differences between a living will and a last will and testament.
What’s Included in a Living Will?
A living will allows you to make decisions about your medical care in advance, particularly concerning life-sustaining procedures. It provides instructions to your healthcare providers regarding:
- Withholding or Withdrawing Treatment: You can specify whether you want life-sustaining treatments to be withheld or withdrawn if you are terminally ill or in an irreversible condition.
- Advance Healthcare Directive: In some states, life-sustaining decisions are included within an advance healthcare directive.
Many people find peace of mind in signing a living will as it helps them avoid the distress of being kept alive through artificial means when there is no hope for recovery.
What’s Included in a Last Will & Testament?
A last will and testament, commonly known as a will, outlines how your assets should be distributed after your death. A well-prepared will can:
- Designate Asset Recipients: Specify who will receive particular assets from your estate.
- Distribute Residual Estate: Decide who gets the remainder of your estate after specific assets have been addressed.
- Appoint an Executor: Choose an executor to manage your estate and specify their powers.
- Name a Guardian: Designate a guardian for any minor children you have.
- Create Trusts: Allocate assets to one or more trusts as part of your estate plan.Having a will gives you control over how your estate is divided. Without one, state laws determine the distribution of your assets.
Living Will vs. Last Will & Testament
Although their names are similar, a living will and a last will and testament serve different purposes:
- Living Will: Specifies your preferences for medical treatment and life-sustaining procedures if you are unable to communicate your wishes.
- Last Will & Testament: Details how your assets and property should be distributed after your death and includes other provisions such as guardianship for minor children.
Ready to Get Started?
Understanding the difference between a living will and a last will and testament is crucial for effective estate planning. If you're ready to set up these important documents, or if you need further guidance, consider working with a professional or using online resources to start your estate planning journey.
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