In the field of estate planning most people are aware of the existence of wills and trusts. What they may not be cognizant of is the fact that there are a number of different types of wills and trusts.
We will look at some of the more commonly utilized trusts in a different post, but let’s take a glance at four different types of wills.
Living Will: An Advance Directive for Health Care
Since there is such a thing as a living trust there can be some confusion about the purpose of a living will. These documents don’t arrange for asset transfers. They are advance directives that are used to state your preferences regarding the use of artificial life support measures.
Ethical Will: A Powerful Tool
These are very interesting documents. Imagine how you may feel if you were to do some soul-searching while planning your estate and come to the realization that you will no longer be able to provide guidance to your family members after you’re gone.
People have had this feeling for thousands of years. As a response many of them have passed along ethical wills to their loved ones. These documents are traditionally used to share your spiritual foundation and the moral code that you have lived by.
Last Will: Common Vehicle of Asset Transfer
This is the document that everyone has heard of, and it is indeed used to state your final wishes regarding the distribution of your financial resources. However, when you are drawing up your last will you should also select an executor to handle the administration of your estate. If you have minor children you would want to include your choice of guardian in the will as well.
Pour-Over Will: Captures Personal Property
This type of will is often utilized in conjunction with a living trust. You may not have conveyed everything that you own into the trust. At the time of your death the pour-over will facilitates the transfer of this personal property into the trust.