When planning ahead, it’s common to hear terms like living will and living trust — and just as common to confuse them. They sound similar, and both are critical parts of long-term planning, but they serve very different purposes. 

A living will gives direction for your medical care if you become unable to speak for yourself. A living trust, on the other hand, protects and distributes your assets according to your wishes, both during your lifetime and after your death. 

What is a living will?

A living will is an advance directive — a legal document that outlines what kind of medical care you do or do not want if you are ever seriously ill, injured or unconscious and unable to communicate your wishes. 

Unlike a last will and testament (which only takes effect after death), a living will is focused on the care you receive while you’re still alive. It often addresses preferences about: 

• Use of ventilators or life support machines 
• Feeding tubes and artificial hydration 
• Resuscitation (CPR or defibrillation) 
• Pain management and palliative care 
• Organ or tissue donation 

This document becomes especially important in medical emergencies when decisions need to be made quickly. Without it, those choices often fall on loved ones, who may not know your preferences or may disagree with each other. 

Benefits of living will.

• Gives you control. You decide what kind of care you want and don’t want. 
• Protects loved ones. Removes guesswork and prevents family disputes. 
• Supports providers. Medical staff have written directives on how to proceed. 
• Affordable and accessible. Typically, easy and inexpensive to create with legal guidance. 

Considerations of a living will.

• A living will only apply to medical decisions, not financial. 
• It must be kept current. Your beliefs or health conditions may change over time. 
• You’ll also need to assign a healthcare proxy (also known as a durable medical power of attorney) to legally carry out your wishes. 

What is a living trust?

A living trust — sometimes called a revocable trust — is a legal entity you create to hold and manage your assets. During your lifetime, you can move property, investments, bank accounts, real estate and other valuables into the trust. You retain full control over those assets and can modify or dissolve the trust at any time. 

Upon your death (or in the event of incapacity), the successor trustee you’ve appointed takes over management and distribution of the assets according to your instructions, without the need for probate. 

In contrast, a last will and testament require a court-supervised probate process, which can be lengthy, expensive and public. 

Benefits of a living trust.

• Avoids probate. Assets can be distributed directly to beneficiaries, saving time and money. 
• Maintains privacy. Unlike wills, trusts are not public records. 
• Supports incapacity planning. If you become unable to manage your affairs, your trustee can step in seamlessly. 
• Customizable. You can set rules for when and how assets are distributed (e.g., to minor children or individuals with special needs). 

Considerations of a living trust.

• More complex and costly to establish than a will. 
• Requires active management — assets must be properly titled in the trust’s name. 
• Doesn’t replace the need for a will or other documents like powers of attorney. 

Key differences between a living will and a living trust.

Though the terms are often confused, a living will and a living trust serve very different purposes. To better understand how they complement each other, here’s a side-by-side comparison to distinguish the key differences between the two. 

While both documents offer peace of mind, they address very different areas of your life. A living will ensures your voice is heard when it comes to healthcare decisions, while a living trust helps you stay in control of your assets and avoid unnecessary legal hurdles. Together, they form a more complete, compassionate plan — for both you and your loved ones. 

Should I have a living will and a living trust?

Yes, you should have both a living will and a living trust — because each one serves a unique and essential purpose in your planning journey. 

A living will handles medical preferences, while a living trust manages your assets. Together, they ensure your wishes are respected both while you’re living and after you're gone. 

Why one isn't enough.

Many people mistakenly believe that having one of these documents is sufficient. But relying on only a living will or only a living trust leaves critical areas of your planning exposed. 

• A living will won’t address who receives your home, savings or belongings after death. 
• A living trust doesn’t tell doctors what kind of medical care you want if you can’t speak for yourself. 

These are two entirely separate but equally important realities: your healthcare and your estate. 

When combined, these tools work in harmony to ensure you stay in control of your own future. You define what “quality of life” means to you and how you want your legacy passed on. 

Real-life scenarios where both matter. 

Consider this situation: You experience a sudden medical emergency and become incapacitated. With a living will, your care team can immediately refer to your written instructions — knowing whether to administer life support, provide pain management or focus on comfort care. Your appointed healthcare proxy can legally speak on your behalf. 

At the same time, your living trust allows your named trustee to step in and manage your financial affairs — paying bills, overseeing property, and ensuring your assets are protected. There's no need to wait for probate court, and no disruption to your family’s stability mentally or financially. 

When the time eventually comes for your assets to be distributed, the living trust provides a streamlined, private process — eliminating delays and minimizing stress for loved ones who are already grieving. 

A living will and a living trust serve different but equally important roles in your overall planning.  

Putting both documents in place is an act of care for yourself and your family. With guidance from a qualified attorney and support from trusted professionals like your funeral director or preplanning advisor, you can take proactive steps to reduce stress, confusion and conflict in the future. 

 *This blog, including incorporated links, is not intended to be legal advice. Homesteaders recommends consulting with your own legal counsel for any questions or concerns you may have regarding the topics discussed in this post.