Wills and Living Trusts

Last Wills, Living Wills, and Living Trusts are all essential state planning tools. They each have vital roles and distinct differences.

A Last Will and Testament is the most commonly used estate-planning tool. It is a critical part of any estate plan, and without it the Courts will make decisions affecting you and your family without your input. It allows you to:

• distribute property to your beneficiaries
• name a guardian for your minor children
• specify your last wishes, including funeral/memorial service arrangements;
• cancel any debts owned to you by another person;
• transfer property into an existing trust; and
• designate a trusted person (an “executor”) to administer your estate.

The disadvantage to using a Last Will is that it is subject to court review (known as “probating a will”), which can delay the distribution of property and require the continued services of an attorney, causing the expenses for your family to increase.  A more efficient alternative to a Last Will is a Living Trust.

A Living Trust is an increasingly popular option in estate planning. Living Trusts are created when you transfer all your belongings into a trust, which you, as the trustee, control during your lifetime. Living trusts are created when you transfer all your belongings into a trust, which you, as the trustee, control during your lifetime. Living Trusts:

• provide all the benefits of a will;
• are generally not subject to probate;
• like wills, may be changed or revoked at any time;
• give you complete control over all your belongings;
• may help reduce estate taxes if you have a high net worth estate; and
• allow you to name a successor trustee if you ever become incapacitated.

In the event you become incapacitated, a Living Will (known in some states as an Advance Healthcare Directive) enables you to make critical health care decisions in advance, such as whether to remain on artificial life support. In addition to a Living Will, Essentia Legal clients also receive a free Health Care Power of Attorney so you can select a trusted person to help you make critical decisions for you.

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