General Questions About Wills, Trusts, and Personal Asset Management

[Cntrl Alt Delete]

Given the current political and economic climate, there is great uncertainty regarding the future. I wish to take the necessary precautions in organizing my life during these interesting times. Is this estate planning? If so, how best do I go about it? Ideally, I wish to organize documentation planning my life. Is this a living will? To my understanding a living will a focus on one's health where something like a "do not resuscitate" clause can be found? I would also like have a contingency plan in the event of my death. Is this a last will? Can a last will be contained with a living will?

Within the living will, is it possible to organize an entity to act as legal proxy to an individual? Is this a trust? Can a trust hold personal assets and have the power to service personal debts? Is this a trust fund? Whatever this entity is, it would have a bank account that pays for the electric bill, a retirement program, portfolios, and assets. Is it possible to then have someone like a manager to have access to these accounts to perform certain actions (like paying the bills)? Is this a representative? So in some weird way, there is a proxy and that proxy has a proxy that isn't the original? Furthermore, is it possible that a business can be created within the trust? Or rather, could a trust fully own a business? I am planning on starting a business in the near future but would first like to get my personal affairs in order.

Is this nested structure optimal or even possible? Living Will >> Living Will + Las Will >> Trust >> Business

I'm not legally minded but am in the early stages of doing my homework. This website has some interesting resources and was hoping to get a second opinion or advice as to where to start. Mostly, this is a personal project and would like to cycle through a few drafts before presenting it to a lawyer.

[flyingron]

The best thing is to get to an lawyer that handles estate situations. They can deal with wills, trusts, etc... that make sense for you.

A living will is a common name for what is properly an ADVANCE MEDICAL DIRECTIVE. That is a statement of your desires (resuscitation and other heroic moves) in the event you are incapacitated and can not state these. It does not authorize others to act for you. However, there is a parallel device called a MEDICAL POWER OF ATTORNEY, who you can designate to make such decision s on your half.

As for someone to deal with your financial affairs when incapacitated, that's just a regular (durable, general) power of attorney.

Trusts and wills are generally estate planning issues, that do not come into play until after you die (though trusts live on both sides depending on their nature). POAs terminate with your life.

A competent lawyer will prepare all of these for you as a package deal usually.

[pg1067]

I wish to take the necessary precautions in organizing my life during these interesting times. Is this estate planning?

"[T]ak[ing] the necessary precautions" is impossibly vague, and "organizing my life" could mean dozens or hundreds of things that have nothing at all to do with estate planning. Estate planning is a term that generally focuses on the disposition of one's assets following death. It also includes end-of-life planning.

how best do I go about it?

Depends on your level of assets, but the only sensible answer to this question is to suggest hiring an estate planning attorney.

Ideally, I wish to organize documentation planning my life. Is this a living will?

"Living will" is a colloquialism that refers to an advance healthcare directive/power of attorney. I have no idea what "organize documentation planning my life" might mean.

To my understanding a living will a focus on one's health where something like a "do not resuscitate" clause can be found?

Despite your use of a question mark, this sentence is not a question mark. However, it is accurate that a DNR clause would most likely be found in a "living will."

I would also like have a contingency plan in the event of my death.

A contingency plan for what? Also, what does "in the event of my death" mean? Are you thinking there's a possibility that you might not die?

Is this a last will? Can a last will be contained with a living will?

A last will and testament (or, simply, a will) is a document that directs the disposition of your probate estate after die.* I suppose a will and a "living will" could be combined into a single document, but they are not generally done that way.

* - One's probate estate is all of one's assets other than those held in trust, held jointly with the right of survivorship, and held in an account with a pay-on-death beneficiary.

Within the living will, is it possible to organize an entity to act as legal proxy to an individual? Is this a trust?

The first question here doesn't make sense (organize an entity within a "living will"?), and the answer to the second is no.

Can a trust hold personal assets and have the power to service personal debts?

A trust is a means of holding assets, and the trustee usually has the authority to "service personal debts."

Is this a trust fund?

"Trust fund" typically refers to money held by a trust.

Whatever this entity is, it would have a bank account that pays for the electric bill, a retirement program, portfolios, and assets. Is it possible to then have someone like a manager to have access to these accounts to perform certain actions (like paying the bills)? Is this a representative?

You appear to be describing a trustee.

So in some weird way, there is a proxy and that proxy has a proxy that isn't the original?

Huh?

Furthermore, is it possible that a business can be created within the trust?

A trust can own a business, and a trust can authorize the trustee to create a business.

Is this nested structure optimal or even possible? Living Will >> Living Will + Las Will >> Trust >> Business

Before something can be optimal or possible, it must first make sense, and this doesn't.

would like to cycle through a few drafts before presenting it to a lawyer.

Why? I don't mean this to insult you, but you clearly don't have any idea what you're doing, so consulting with an attorney sooner than later would be most sensible.

[flyingron]

If you want to save time with the lawyer, gather up all the information on your assets and identities (names and addresses, etc...) of those who you might wish to designated authority to while living or after death, and those who you want to have your assets after you pass.