Living Will? Living Trust?

I am often asked whether a "Living Will" and "Living Trust" address the same issues. In Maryland, they do not.

A Living Will is a document in which you specify what treatment or procedures you want or do not want in the event you are in a coma or suffering from a terminal condition. Although a Living Will sets forth your desires relative to your future medical care, it generally does not provide for the appointment of a health care agent.

In a Durable Power of Attorney for Health Care, also known as an "advance directive" you can appoint an individual or individuals to serve as your health care agent. You can authorize your agent to take certain actions on your behalf, including the right to obtain and review your medical records, and information regarding your physical and mental health, request your discharge from a treatment facility or the care of certain treating medical personnel, and request the withholding or withdrawal of health care, including life-sustaining procedures in the event you are suffering from a terminal illness. You can also name your health care agent as your guardian in these documents, in the event you become incapacitated.

A Revocable Living Trust, often referred to as a "Living Trust" is a Trust which is established and in force during the lifetime of the person who creates the Trust, known as the Grantor. Assets of the Grantor are conveyed to the Trust, and they are held in trust for the benefit of the Trust Beneficiaries.

The Trustee appointed is responsible for carrying out the terms of the Trust. There are advantages and disadvantages to a Living Trust. Such a Trust can be very useful for managing the assets of an individual who is concerned about their future disability. Also, Trust assets are not subject to probate administration, and, unlike a will, the contents of the Trust agreement are generally not disclosed to the public.

The creation of a Trust agreement is usually more costly than a will, Trustee fees must generally be paid, there are record keeping responsibilities and other considerations. Additionally, Revocable Trust property is subject to Federal estate and gift tax and Maryland Inheritance tax, just like property passing under a Will.

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All materials on this Web site are the property of Valerie A. Rocco, of the Law Offices of Valerie A. Rocco. © Copyright 1998 - 2005 Valerie A. Rocco. All rights reserved.