Review: The Difference between a Living Will, Last Will and Testament, and Family Trust

When setting up your estate you will need to be aware of the differences between the major estate planning documents including your Phoenix living will, last will and testament, and family trusts. All of these documents are very important and each of them plays a significant role in your overall estate plan.

A Phoenix living will is used to make medical decisions on your behalf

Your Phoenix living will, also known as an advanced health care directive, is a document that has written instructions on the types of actions and medical interventions that should be used for a person if they are incapacitated or unable to communicate. A Phoenix living will should be used in combination with a medical power of attorney. A medical power of attorney assigns an individual as a health care proxy who can interpret the Phoenix living will to make decisions on the incapacitated person’s behalf.

A Phoenix living will is a very important part of anyone’s estate plan and should never be overlooked, as there are many potential circumstances where a Phoenix living will may need to be used. A Phoenix living will should be sufficiently detailed, and an estate planning expert can help you come up with a proper Phoenix living will.

A last will and testament is a core estate planning document

The last will and testament is the major estate planning document that is used to distribute and manage your estate. The document has details about which beneficiaries get your assets after you die, and it also allows you to pick an executor who will be in charge of distributing your estate. You can also decide on who you would want to look after your children in your last will and testament.

A family trust offers the ability to avoid probate

With a last will and testament, there is a need for probate court in order to interpret the will and distribute the assets. However, with a family trust, also known as a revocable living trust, assets can be given to their inheritors without having to deal with probate court. A family trust controls one or more of your assets during your lifetime, and has terms on what to do with the asset when you pass away. It is another core estate planning document that can be used in many situations along with your Phoenix living will and last will.

Need Help?

If you are not sure as to what legal document you currently have contact one of our professionals to help you with your planning needs. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.