What are the differences between a living will and a trust?

As a lawyer, I would like to provide you with legal advice on the differences between a living will and a trust.

A living will is a legal document that provides detailed instructions on how medical decisions should be made for an individual who is unable to communicate their wishes due to incapacity. A living will often includes information on specific medical treatments or procedures that an individual would or would not like to receive in specific situations. It grants an individual the right to choose the medical treatments they do or do not wish to receive, to relieve the burden of decision-making from their family members in the midst of an emotional crisis.

On the other hand, a trust is a legal document that is designed to manage a person's assets by transferring them into the trust's ownership. The trust is managed by a trustee, who is responsible for the distribution of assets according to the wishes of the person who created the trust, or the grantor. Trusts are often created to minimize estate taxes or to provide a planned distribution of property to beneficiaries after the grantor's death.

While both living wills and trusts are legally binding documents, they are different in terms of their purposes and goals. A living will provides instructions for medical decision-making in the event of incapacity, while a trust deals with management and distribution of assets. Generally, people will create a living will to ensure that their medical wishes are respected, while a trust is used to plan for the distribution of assets upon death.

It's worth noting that while living wills are legally binding, some states do not recognize them, such as New York. Meanwhile, trusts can be put in place in every state, however, certain state laws may have restrictions and limitations on trusts.

In conclusion, it is crucial for individuals to seek legal advice in setting up a living will or trust that is tailor-fit to their needs and objectives. A licensed attorney can assist in setting up the documents and ensure they adhere to the current laws and legal precedents relevant to their jurisdiction.