What is a living will?

As parents, we want nothing more than to take care of our families, and a living will gives us a way to do just that. 

Think of a living will as a legally binding personal blueprint that spells out your wishes for end-of-life care. It's like a roadmap for your loved ones and doctors, guiding them on the medical treatments you want (or don't want), your thoughts on quality of life, and even who you trust to make healthcare decisions for you if you can't.

Anyone who's over 18 and of sound mind can set up a living will. It's not about your age or current health. Life is unpredictable. A living will protects your end-of-life wishes, making them clear for everyone important to see.

If you're still wondering "What is a living will?" or "Why do I need one?" you're in the right place. Let’s dive into what a living will covers and why it's an important part of your family's legal planning.

What are the benefits of a living will?

By creating a living will, you have the opportunity to express your personal values and medical preferences in case you can't communicate your wishes due to illness or death. Let's explore some of the primary benefits of crafting your own living will.

Keeping decision-making in your hands

One big win of having a living will is that it lets you call the shots on your medical care, even if you can’t voice them out loud. When you can’t communicate due to an injury or sickness, your living will makes sure your end-of-life care preferences are easy to follow so your kids and loved ones don't have to worry. It also helps prevent potential conflicts among family members who may have differing opinions on what to do.

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Defining your quality of life

No one wants to be in a physical state where they can't enjoy life. That's what a living will is for. It lets you spell out what "quality of life" means to you in different medical situations. Would you prefer being at home instead of the hospital? What about life-extending treatments? How do you feel about pain management? These are some of the questions that you'd probably want a say in.

By putting these preferences in writing, you align your healthcare with your values, making it easier for your family to navigate these decisions without second-guessing. It's not just about the medical treatments you want. It's also about setting yourself to live your life on your terms, surrounded by the care and comfort you value most.

Specifying medical treatments and wishes

In your living will, you have the power to state exactly what medical treatments and interventions you’re comfortable with. Do you want emergency measures like CPR? Life-support procedures like mechanical ventilation and dialysis? The option to be part of experimental treatments? You get to decide. In your living will, you can specify the types of medical care you prefer under various health conditions.

You can also weigh in on the use of antibiotics or antivirals in your living will, especially in scenarios involving end-of-life care. You might prioritize extending your life as much as possible, or you might choose to focus on maintaining comfort without aggressive medical interventions. This is a great opportunity to express your wishes about organ and tissue donation, too.

Trusts vs. wills

Trusts, wills, living wills — with all these legal documents, it's easy to get confused. But there are some key differences to learn about. 

In a nutshell: A living will is about your healthcare decisions, but trusts and wills focus on what happens to your stuff after you're gone. Depending on what you need, you might use these documents alone or together.

What’s a trust?

A trust is like a financial safety deposit box where you put your assets, and a trusted person (called a trustee) holds the key. This trustee manages and hands out these assets based on your instructions. 

Trusts come in different flavors: There are living trusts that kick in while you're still around, revocable trusts that you can change, and irrevocable ones that you can't. There are even special trusts for charitable giving or for taking care of family members with special needs. Trusts are generally for tax planning, asset protection, and estate planning.

The most popular kid on the block is the revocable living trust. It lets you keep control over your assets while you’re alive and then smoothly passes them on to your beneficiaries when you're no longer here, without the need for a lengthy legal process.

What’s a will?

Then there’s the will, formally known as the "last will and testament." It's your final word on who gets what from your estate — your house, your money, your grandmother's china set, you name it! 

Unlike a living will, this one doesn’t deal with doctors and hospitals and instead has to do with handling your physical and financial assets. It also lets you name an executor, the person in charge of executing your will's directives.

Wills can be simple or complex based on how complicated your estate is and what your specific wishes are. An important thing to note about wills is that they're subject to the probate process. This is a court-supervised procedure that ensures rightful asset distribution, debt settlement, and resolution of potential disputes. The probate process can last a long time, and the estate pays for it.

Trusts vs. wills: Understanding the differences

When it comes to planning your estate, trusts and wills are both key players, but they work in unique ways. When asking "What is a living trust vs. will?" here are some of the main differences to think about:

• Asset management dynamics: Trusts are like multitaskers — they take care of your assets while you're alive and continue their job after you're gone. But wills wait in the wings until you pass, then step in to manage and distribute your assets.

• Probate and privacy considerations: A will has to go through the probate process. Trusts, particularly revocable living trusts, give you a more private way to pass on your assets, usually skipping the probate stage.

• Adaptability over time: A will usually stays the same until your death, but you can modify trusts during your lifetime. You can add or remove assets from a trust, change beneficiaries, or even terminate the whole thing.

• Scope of asset allocation: While a will can divide your assets, trusts can go further. Trusts let you dole out money from the trust to beneficiaries at specific times or conditions, such as when they reach a certain age. They also may focus on more specific needs, like reducing taxes or protecting your wealth from creditors.

• Guardianship provisions: If you have kids, it's important to think about guardianship. Only a will can appoint who's legally able to care for your kids should something happen to you. If you don't have this in a will, the state may step in and make that decision for you.

Examples of how a living will safeguards your family

Now that we've gone through the details of living wills, here are the most important reasons to consider creating one for your family:

• Preventing family disputes: Let’s face it, family members have different views on lots of things, including medical care. A living will cuts through potential arguments by clearly stating what you want. It’s like leaving a clear set of instructions so everyone knows your wishes.

• Alleviating decision-making burdens: Choosing medical treatments for someone else can be incredibly tough, emotionally and ethically. A living will takes the responsibility off your family’s shoulders. It’s your way of saying, "Don’t worry, I’ve got this sorted," so your loved ones don’t have to make those hard calls.

• Solidifying your healthcare wishes: Most importantly, a living will assures you that your healthcare will reflect your values and beliefs. You get the final say in how you're cared for, even if you can't voice it out loud.

Example 1: An emergency medical situation

Imagine you're involved in a serious accident and are in and out of consciousness. Your living will can provide immediate guidance to healthcare providers about what life-sustaining treatments to use, like mechanical ventilation or resuscitation. Then, your family doesn't have to make these critical decisions.

Example 2: A progressive illness

Another scenario: Pretend you've reached the stage of a progressive illness that has started to impair your ability to make decisions. But you crafted your living will when you were capable, so your kids don't have to worry about your pain management preferences and when is best to focus on palliative care (comfort measures) rather than curative treatment.

Empower your healthcare decisions with a living will

A living will allows you to articulate your wishes for medical treatment and end-of-life care. This document covers everything from life-sustaining measures to pain management, and even your take on quality of life, all while appointing someone you trust to be your healthcare proxy.

It lifts the weight of tough medical decisions off your family's shoulders and keeps potential conflicts at bay by making your healthcare preferences crystal clear. Remember, it’s not just for those in their later years or facing illness — life is unpredictable, and a living will is a wise move for adults at any life stage.

Now, if you're wondering how you can further empower yourself and your kids to make smart life and financial decisions, Greenlight’s Learning Center is the place to go. It's a treasure trove of resources that dive deep into essential topics like financial planning and estate management. 

To get your kids or teens started on a safe path toward financial preparedness, check out Greenlight Infinity. With tools like location sharing, SOS alerts, and crash detection, combined with a card that gives 1% cash back and 5% on savings* — this app keeps everyone connected and educated.

So why wait? Start building a better, more empowered family future today. 

Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Community Federal Savings Bank (CFSB), Member FDIC. *Greenlight + Invest families can earn monthly rewards of 1% per annum, Greenlight Core and Greenlight Select families can earn 2% per annum, Greenlight Max families can earn 3% per annum, and Greenlight Infinity families can earn 5% per annum on an average daily savings balance of up to $5,000 per family. Only Greenlight Max and Infinity families can earn 1% cash back on spending monthly. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.