Most people get confused when they hear the terms living trust and living will for the first time. Both of them are legal terms with different meanings. Knowing about the difference between the two will avoid any confusion when deciding important end-of-life matters.
Let’s find out how a living will is different from a living trust, and which one is suitable for what situations.
What is a Living Trust?
A living trust refers to a legal document that is created by a person during his or her lifetime. It outlines how the property is to be managed after the demise of a person. Creating a living trust bypasses the costly and often time-consuming process of probate.
A living trust mentions the beneficiaries, as well as the trustee who will manage the property of the person who creates a trust. Living trusts are two types:
Revocable trusts — A revocable trust transfers the ownership of the asset in the name of the trust. However, a person can revoke or modify the ownership at any time.
Irrevocable trusts — An irrevocable trust also transfer the ownership to the trust similar to revocable trust. But a person relinquishes control over the assets. The benefit of irrevocable trusts is that the assets are not subject to taxes.
What is a Living Will?
A living will is entirely different than a living trust. With a living will, you give instructions about the medical treatment you want (and don’t want) in case of a terminal illness such as coma. It is executed when you suffer from a serious injury or disease that makes you incapacitated and from which recovery is not possible.
You can specify whether you want the heart to be resuscitated in the event of a heart attack, or whether you should be put on a respirator or tube in case you become brain dead. At that time, you can make your voice heard in the form of a living will.
Hire a Professional Illinois Attorney for Estate Planning
The state of Illinois has special laws regarding living trusts and living wills. You should consult with an estate planning attorney to ensure that all the bases are covered, and that your family members don’t suffer in bad times.
An estate planning attorney will guide you in preparing the legal documents that satisfies the state requirements. It will prevent the prospect of your estate ending up with unintended beneficiaries. After all, you want all your hard-earned money to go to your loved ones after you die.
For experienced help regarding estate planning and trust litigation, you should contact us today. We can help you connect with an experienced attorney who are in good standing with Illinois state bar. Research our estate planning lawyers now by clicking here.