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When it comes to planning for the future, few tasks are as important as comprehensive estate planning. Many people believe a simple will is all they need, only to discover that other documents are also necessary when planning for the future. For example, let’s compare the living trust and the living will. These two terms are often used interchangeably, but the documents serve very different purposes. Understanding what each one does and how they work together can help ensure your wishes are honored and your loved ones are protected.

What Is a Living Trust?

A living trust is a legal document that allows you to place assets, such as your home, bank accounts, or investments, into a trust while you’re still alive. You can continue to manage these assets as the trustee, and appoint a successor trustee to take over if you become incapacitated or pass away. This structure offers flexibility and control during your lifetime and simplifies the transfer of assets after your death.

One of the most significant advantages of a living trust is that it allows your estate to bypass probate. Probate is the court-supervised process of validating a will and distributing assets, and it can be time-consuming, expensive, and public. A properly funded living trust avoids this process entirely, which means your heirs can access what you’ve left them more quickly and with fewer complications.

A living trust is especially helpful if you own property in multiple states, have a blended family, or want to keep your estate matters private. It can also help if you’re concerned about managing your assets during a time of illness or cognitive decline. With a living trust, your successor trustee can step in seamlessly to handle your finances without the need for court involvement.

What Is a Living Will?

While a living trust focuses on property and finances, a living will addresses your medical care. Also known as an advance directive, a living will is a legal document that outlines your preferences for treatment if you’re unable to communicate your wishes due to illness or injury.

For example, your living will might state whether you want to be kept on life support, receive artificial nutrition or hydration, or undergo specific medical procedures. It gives your doctors and loved ones clear guidance so they’re not left guessing during emotionally difficult times.

In New Jersey, a living will can be paired with a healthcare proxy or power of attorney for healthcare, which allows you to name someone you trust to make decisions on your behalf. This ensures that someone familiar with your values and preferences is legally allowed to act on your behalf if you can’t speak for yourself.

Having a living will can relieve your family from making heartbreaking decisions during a medical crisis. It’s a way to maintain your dignity and autonomy, even if you’re unable to voice your wishes at the time.

Why You Need Both in Your Estate Plan

A common misconception is that one document can handle everything. In truth, a living trust and a living will serve entirely different purposes, and together, they form a more complete plan.

Your living trust takes care of managing and distributing your assets, both during your lifetime and after your death. It provides a clear path for what should happen to your home, savings, and other valuables, without court interference.

Your living will, on the other hand, ensures that your medical preferences are followed if you become incapacitated. It protects your healthcare wishes and relieves your family from the burden of making uncertain choices during stressful moments.

By having both documents in place, you can be confident that all aspects of your future are considered—your physical well-being and your financial legacy.

Waypoint Legal Can Help You Plan with Confidence

Estate planning can feel overwhelming, especially when you’re trying to balance medical decisions, family dynamics, and asset protection. At Waypoint Legal, we take the time to understand your individual needs and walk you through the entire process with clarity and care.

Our experienced elder law attorneys specialize in building personalized estate plans that comply with New Jersey law and reflect your unique wishes. We’ll help you create a living trust that ensures your assets are protected and distributed efficiently. We’ll also guide you through drafting a living will that provides peace of mind for you and your loved ones in a medical emergency.

Whether you’re starting your estate planning from scratch or updating documents that no longer reflect your wishes, we’re here to help every step of the way. We believe your legacy deserves thoughtful, tailored planning, and we’re committed to making sure it’s done right.

Schedule a consultation with Waypoint Legal today!

Living Trust vs Living Will FAQs

What is the main difference between a living trust and a living will?
A living trust manages and distributes your assets during your lifetime and after death, while a living will outlines your medical treatment preferences if you’re unable to communicate.

Why is a living trust beneficial for estate planning?
A living trust allows you to avoid probate, maintain privacy, and ensure a smoother transition of control to a successor trustee if you become incapacitated or pass away.

When should someone consider creating a living will?
You should create a living will if you want to ensure your medical treatment preferences are followed in the event you become unable to make decisions for yourself.

Can I name someone to make healthcare decisions for me?
Yes, in New Jersey you can pair a living will with a healthcare proxy or power of attorney for healthcare to designate someone you trust to act on your behalf.

Is one document enough for a complete estate plan?
No, a living trust and a living will serve different purposes and work best when used together to protect both your financial and healthcare wishes.

How does a living trust help avoid probate?
By transferring ownership of assets into the trust, the need for court-supervised probate is eliminated, allowing for faster, more private distribution.

Does Waypoint Legal help with both documents?
Yes, Waypoint Legal offers guidance in creating both living trusts and living wills, tailoring each to your specific needs and goals.