How to Know if a Will, Living Will, or Living Trust is Needed

There are many differences between a will, living will and living trust. Each document is used for a specific legal purpose and is vital for estate planning. Many people don’t like the idea of writing a will or thinking about death. It reminds them of their own mortality, and that can be a bitter pill to swallow. But at the end of the day, you have to protect your loved ones and make sure they are provided for properly. You also have to protect your assets and make sure your family is not burdened financially if you pass away or are not in a position to make decisions for yourself. That is where these documents come into play.

Difficulty: Moderately Easy

Instructions

1. Determine which one of the three documents you will need depending on your circumstance. Look at each option and decide which one fits your personal needs. You may need one or more of the three options depending on your situation.

2. 

   Research and evaluate information about a will and determine its necessity based on your personal situation.
   
   A will is a legally binding document that contains information about what your final wishes are and how you want your assets and property to be distributed to your beneficiaries after your death. It can also specify a legal guardian for any minor children and assign money to pay any outstanding taxes, debts or funeral expenses. In the will, you can also appoint an executor, who will be responsible for carrying out your wishes.
   
   Even if you think you don’t have a lot of possessions, you still need a will. You should specify anything you want distributed and this could be assets from vehicles and furniture to jewelry and artwork.

3. Research and evaluate information about a living will and determine its necessity based on your personal situation.
   
   A living will is a document a person uses to communicate his wishes regarding life prolonging medical treatments. A living will is essential, as it gives healthcare providers and your family information about how to handle your medical needs. For example, you may have a provision against receiving a blood transfusion. Some people include their wishes regarding resuscitation or how to handle the situation if they were placed on life support. As you can see, these are very important issues that should probably be addressed before the individual is unconscious and unable to make theses decisions for himself.

4. Research and evaluate information regarding a living trust and determine its necessity based on your personal situation.
   
   
   A living trust is primarily a legal document used to avoid having property go through probate. A trustee is appointed, giving them full control over the property. The living trust allows the owner of the property to circumvent probate by allowing the trustee to transfer ownership of any property directly to the beneficiaries. Once the transfer has occurred, there is no further need for the living trust. The advantage of making a living trust is avoiding probate court. Even with a living trust, you typically still need a living will as a back up for any property not transferred to the trustee.

5. Evaluate all three legal documents and decide which of the three you may need. You may need more than one or possibly all three depending on your circumstances. Consult with an attorney to be sure you are making the appropriate decisions based on your needs.

6. Have the appropriate documents drawn up based on your personal situation. Be sure to inform your spouse or other loved ones that these documents have been created and keep them in a dry, fire proof place that will be safe. Make sure you let loved ones know where and how to access them in case you are not able to do so for yourself.

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[joy1975]

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