Living Will
Financial term in the Estate Planning category
Definition
A legal document that specifies your wishes regarding medical treatment and life-sustaining measures if you become terminally ill or permanently incapacitated and cannot communicate your decisions. Unlike a last will and testament, a living will takes effect while you are still alive and addresses healthcare decisions rather than asset distribution. It typically covers preferences about resuscitation, ventilators, feeding tubes, and pain management.
Related Terms
Advance Directive
A broad term for legal documents that allow you to express your healthcare preferences and appoint someone to make medical decisions on your behalf in case you become unable to do so. Advance directives typically include a living will and a healthcare proxy, though specific requirements and terminology vary by state. Having advance directives in place ensures that your medical care aligns with your values and reduces the burden on family members during difficult times.
Healthcare Proxy
A legal document that designates a trusted person to make medical decisions on your behalf if you become unable to make or communicate those decisions yourself. The person you choose, sometimes called a healthcare agent, should understand your values and wishes regarding medical treatment. A healthcare proxy works in conjunction with a living will to ensure your healthcare preferences are honored.
Power of Attorney
A legal document that grants another person, called an agent or attorney-in-fact, the authority to make decisions and act on your behalf in financial, legal, or healthcare matters. A power of attorney can be limited to specific transactions or broadly cover all financial affairs, and it can take effect immediately or only upon your incapacitation. Having a power of attorney in place ensures that someone you trust can manage your affairs if you become unable to do so yourself.
Will
A legal document specifying how assets should be distributed after death and naming guardians for minor children. Must go through probate court to be executed.
Frequently Asked Questions
What is Living Will?
A legal document that specifies your wishes regarding medical treatment and life-sustaining measures if you become terminally ill or permanently incapacitated and cannot communicate your decisions. Unlike a last will and testament, a living will takes effect while you are still alive and addresses healthcare decisions rather than asset distribution. It typically covers preferences about resuscitation, ventilators, feeding tubes, and pain management.
Why is Living Will important in personal finance?
Living Will is an important estate planning concept that helps individuals make better financial decisions. Understanding Living Will can improve your financial planning and help you achieve your money goals.
How does Living Will relate to Advance Directive?
Living Will and Advance Directive are related financial concepts. A broad term for legal documents that allow you to express your healthcare preferences and appoint someone to make medical decisions on your behalf in case you become unable to do so. Advance directives typically include a living will and a healthcare proxy, though specific requirements and terminology vary by state. Having advance directives in place ensures that your medical care aligns with your values and reduces the burden on family members during difficult times.
More Estate Planning Terms
View all Estate Planning termsGet Personalized Advice
Ask Warren AI how Living Will applies to your specific financial situation.
Try Warren Free