For others, it can seem a little unusual to use the words’ living will and’ living trust.’ They can also be used interchangeably. When used this way, it is incorrect. You need to realize that it is very different from a living trust that a living will is. They do have some similar features, but you will be able to use them both to your benefit when you know their exact meanings.If you wish to learn more about this, visit Colleen Marie & Associates, Oceanside.
A “Living Will” is a legal document that specifies explicitly what your wishes are when you are incapacitated by a terminal disease or enter a permanent vegetative state with respect to any health care decisions to be made. A life can only take effect until proof of incapacity demonstrates that you are unable to take part in any decision-making about your medical care.
Of course, the application of living wills would be regulated by state law, with the laws being different from one state to another. When drawing up a living will, be vigilant and be sure to follow a state-specific protocol to prevent any disputes. This is a lawful text, after all.
In basic terms, if you are unable to make choices about your health or any potential directives that are your wishes, a living will inform the doctors and/or the legal system what your needs are.
A ‘Living Trust is a legal document written in writing that may take the place of a will. It enables you to put any or all of your assets in a trust for as long as you live, to be managed to your benefit. In order to pay less taxes, the wealthy do this. In the event of your death, all your assets will be passed to those identified as your recipients under the terms of the trust.
The multimillionaire, H. T. Hunt owned only an old pickup truck when he died, but his confidence filled two pages of the Houston telephone directory. The billions of dollars were passed on to his descendants for about $1 million, highlighting the advantages of using trusts.
A living trust basically ensures that your properties will be treated in compliance with your wishes. You may initially want to serve as its trustee in setting up the trust. In the future, you can think about when it will be wise to choose a successor trustee, while you still have a sound mind and can make informed choices.
The successor trustee you have named will behave similarly to an enforcer of a will when you are incapacitated or pass away. Paying any outstanding loans, taxes and lawsuits against the trust; and distributing the trust’s assets according to the written instructions would include the functions. These activities can be done without permission or oversight from the judge, which can save many many dollars.
In general, a living trust is not considered a top priority and not everyone will benefit a lot from one. A living trust will have no advantages for a person with modest assets, since they are used mainly to lower taxes and pay little or no inheritance taxes.
Colleen Marie & Associates
1470 Powell Rd., Oceanside, California 92056