Living Will And Trust Definition

A living trust is a legal document created by you the grantor while you are alive.

Living will and trust definition.

Just like a will a living trust spells out your wishes regarding your assets dependents and your heirs. 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. Trustees with fiduciary duty manage trusts according to the beneficiary s best interests. You cannot do this with a will however you can also make a durable power of attorney to appoint someone to manage your finances.

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. It s revocable because as long as you re mentally competent you can change or dissolve the trust at any time at your own discretion for any reason. 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. Like a will a trust will require you to transfer property after death to loved ones.

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. A living trust designates a trustee to manage assets for the beneficiary while the grantor is still alive.