Estate planning is even more complicated if you don’t know the difference between a Living Will and a Last Will. A Living WIll and a Last Will are two documents prepared to ensure your wishes are properly executed. Still, each of them has its area of application. In this guide, we'll break down everything you need to know about a Living Will vs Last Will, helping you make informed decisions for your future.

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What is a Living Will?

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The living will, also called an advance healthcare directive, is a legal document informing medical staff of your health desires in the event you become incapacitated or unable to make decisions. This document can include the treatments you want or don't want. It explicitly addresses choices such as whether you want life support, certain surgeries, or specific therapies in cases of severe illness or injury.

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Key Features of a Living Will

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• Health specific: A Living Will contains medical issues exclusively.
• Activation: It automatically gets executed when you cannot communicate with anyone or if you are in a vegetative state or with a severe physical injury typically.
• Flexibility: The flexibility to describe many care plans, from surgery to end-of-life care, exists.
• Durability: Remains in place unless you cancel or modify it.

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Why You Might Need a Living Will

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Without a Living Will, your family members or healthcare providers may have to guess your choices. This situation can lead to disputes or emotional stress. By writing your preferences down, you get rid of the cloud and ensure you are dealing appropriately with your personal decisions.

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What is a Last Will?

A Last Will is a legal document that details how you want your assets distributed after you die. This is the usual kind of will everyone knows about. It lets you designate who will inherit your property, choose a guardian for your children, and appoint someone to manage your estate.

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Key Features of a Last Will

• Asset-focused: The Last Will's primary objective is to deal with your assets after you pass away.

•  Executors: You can designate an executor to fulfill your wishes as the will outlines.

• Guardianship: You can assign legal guardianship to those who will become parents or any minor children you have.

•  Posthumous Effect: The will goes into effect after you die.

Why You Might Need a Last Will

A will is a legal document involving the disbursement of your possessions, land, and digital assets according to your wish. Without a will, state laws (intestacy laws) determine how to split your assets, often failing to reflect your preferences.

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Living Will vs Last Will: The Key Differences

While we have clarified the basics of these two documents, now let’s go through the main differences between a Living Will and a Last Will.

Purpose

•  Living Will:  A Living Will is the document you make for the doctors so that they can curate your medical plan when you are still alive but unable to communicate.

•  Last Will: A Last Will is a legal document that outlines how you wish to distribute your assets and handle other important matters after your death.

Timing

•  Living Will: A Living Will can be helpful when you are still alive, especially in critical health problems where you are incapacitated.

•  Last Will: A Last Will comes into effect only after your death.

Content

•  Living Will:  Living Will deals purely with treatments, life at the terminal stage, and the decision of the healthcare provider over the patient.

•  Last Will: A Last Will consists of managing wealth affairs, identifying and appointing guardians to children, and giving executors the powers.

Revocation

•  Living Will:  You may cancel or change a Living Will if you are competent.

•  Last Will: Last Will can be modified or invalidated, but it becomes effective only after you have passed away.

Who Needs It?

· Living Will:
Everyone should consider having a Living Will to ensure that their medical care preferences are respected in case they are unable to communicate their wishes.

·  Last Will:
Everyone, whether married, with children, or simply wanting to ensure their assets are distributed as they choose, benefits from having a Last Will in place.

Common Misconceptions About Living Wills and Last Wills

"I only need one of these documents."

Many people misinterpret it and believe they only need the Last Will for the asset part. True, it deals with a fundamental matter like the allocation of property that belongs to you, but it won't address your healthcare wishes. Ideally, you should have both a Living Will and Last Will to cover all aspects of your future planning.

"My family will make the right decisions for me."

While trusting your loved ones is natural, medical decisions can be complex, especially in stressful situations. Without a Living Will, your family might struggle to decide what's best, and their choices might not align with your wishes.

"I am not rich enough to require a Last Will."

Even if you don't own many assets, your estate plan would still be incomplete without a will. Drafting a will isn't just about determining legal shareholders. You can also leave specified property and gifts to loved ones or create a trust to distribute your estate.

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The Bottom Line

Having both a Living Will and a Last Will is essential for comprehensive estate planning. A Living Will outlines your medical preferences to ensure they are followed if you cannot communicate. A Last Will outlines how to distribute the property of the deceased person according to their wish. With Timely, you can create both documents in 15 minutes and secure your peace of mind.