Living Will And Trust Definition

Just like a will a living trust spells out your wishes regarding your assets dependents and your heirs.

Living will and trust definition.

Let s focus on a revocable living trust for the purpose of estate transfer. In determining your wishes think about your values. A revocable living trust is a written agreement designating someone to be responsible for managing your property it s called a living trust because it s established while you re alive. This property is typically invested and spent for the benefit of the beneficiary typically the trust maker the person who created the trust at least during their lifetime.

A living trust is a legal entity created by individuals to hold and own their assets after they transfer them into the trust s ownership. You cannot do this with a will however you can also make a durable power of attorney to appoint someone to manage your finances. In a living trust you can name your spouse partner child or other trusted person to have authority over trust property if you become incapacitated and unable to manage your own affairs. Like a will a trust will require you to transfer property after death to loved ones.

Trustees with fiduciary duty manage trusts according to the beneficiary s best interests. A living will is a written legal document that spells out medical treatments you would and would not want to be used to keep you alive as well as your preferences for other medical decisions such as pain management or organ donation.