What’s the Difference Between a Living Will and a Living Trust?

James Nici

Estate planning can feel like learning a new language—especially when the terms sound so similar. One of the most common points of confusion we hear is the difference between a living will and a living trust. While both are important documents, they serve very different purposes.

 

Here’s what you need to know about each—and why most people need both.

 

What Is a Living Will?

 

A living will is a legal document that outlines your wishes for medical treatment if you become incapacitated and unable to communicate.

 

Think of it as a healthcare directive —it tells doctors and loved ones what kinds of life-sustaining treatments you do or do not want if you’re in a coma, on life support, or facing a terminal illness.

 

A living will can cover:

  • Whether you want to be kept alive on a ventilator

  • Your preferences for resuscitation (CPR or defibrillation)

  • Use of feeding tubes or hydration

  • Pain management and comfort care

💡 Key point: A living will has nothing to do with your money or property. It’s strictly about medical decisions.

 

What Is a Living Trust?

 

A living trust(also called a revocable trust) is a legal entity you create to hold and manage your assets during your lifetime—and distribute them after your death according to your wishes.

 

When you create a living trust, you can transfer ownership of your home, bank accounts, investments, and other assets into the trust. You typically serve as your own trustee while you’re alive, and name a successor trustee to take over upon your incapacity or death.

 

A living trust can help you:

  • Avoid probate (saving your family time and money)

  • Keep your estate matters private

  • Manage your assets if you become incapacitated

  • Ensure a smooth transfer of assets after death

  • Provide clear instructions and protections for beneficiaries

💡 Key point: A living trust is all about your finances and property —not medical care.

 

Do I Need Both?

 

In most cases, yes. A solid estate plan typically includes both a living will and a living trust, along with:

  • A durable power of attorney(for financial decisions)

  • A healthcare proxy or medical power of attorney(to name someone to make healthcare decisions on your behalf)

  • A last will and testament(to handle any assets not placed in your trust)

These documents work together to protect your wishes— both medically and financially —during your lifetime and after your death.

 

Protect Your Future—Comprehensively

 

While it’s easy to mix up a living will and a living trust, understanding the difference is crucial for effective estate planning. One safeguards your medical wishes, the other manages your assets —and both play a vital role in giving you and your loved ones peace of mind.

 

At Nici Law Firm, we help individuals and families create complete estate plans that reflect their values, protect their assets, and provide clarity in times of uncertainty.

 

Contact us today to schedule a consultation and make sure your plan covers all the bases—clearly and confidently.