Trusts represent the separation of the legal title to property from the beneficial enjoyment. That is, the trustee holds legal title to property, but holds the property for the beneficial enjoyment of one or more persons referred to as beneficiaries. Trusts may be express or implied, revocable or irrevocable, and may be created under a decedent’s Will (“testamentary” trusts) or while the person is still alive (“inter vivos” or “living” trusts). Some trusts (usually revocable living trusts) are used to carry out much the same purposes as a Will, in that the person who creates the trust (referred to as the “Trustor” or “Settlor” or “Grantor”) may provide in the trust for the disposition of the Settlor’s property upon death. But such a trust may also be used while the Settlor is alive, a key distinction from a Will. Property that is in such a trust at the time of the Settlor’s death–or that passes to it pursuant to a beneficiary designation–does not pass through probate and so is not controlled by the decedent’s Will.

There are many variations of trusts used for many different purposes. They can be used to hold property for someone who is not capable of holding and managing assets, such as minor children. They can be used to hold assets for one person for a time but ultimately to distribute the property to someone else. For example, in a second marriage, one may desire to provide for the other for life, but then upon the other’s death, have the assets distribute to one’s own children.

An agent may be appointed to act on behalf of another, referred to as the principal. The powers given the agent may be very limited or quite broad. It is a “durable” power of attorney if it contains appropriate language that states it will stay in effect even if the principal subsequently becomes incapacitated, or if the governing statute so provides. If no agent is serving and one becomes incompetent, it may be necessary to have a guardian appointed. In many cases, having a valid durable general power of attorney in place can avoid this court proceeding.

A health care power of attorney designates an agent to make health care decisions on your behalf. Decisions such as, whether to have an operation, whether a particular treatment ought to be undertaken, which doctor to use, and which hospital to go to. And then the agent can take action on those decisions: signing admission and discharge papers, giving informed consent, hiring and firing health professionals, paying for treatment, and so on.

A living will is a directive signed in advance that under certain conditions, you do not wish [or do wish] to have life support. You can designate one or more agents to make this decision on your behalf.