For one reason or another I have come to discover that many members of the general public believe that if they have executed a Health Care Proxy (HCP) or a Living Will (LW) that they are the same as a Do Not Resuscitate Order “(DNR),” however, that is not the case.

A HCP allows an adult (the principal) to appoint another adult (the agent) to make medical decision for them when they are no longer able to make said decisions. A HCP can include authority for the agent to commence or continue life sustaining treatment, as long as it is stated in the HCP or the principal has told their agent their wishes regarding life sustaining treatments, such as whether they want artificial nutrition, hydration, nasogastric tubal feeding, or any other mechanical life sustaining treatment. Placing specific and detailed instructions in the HCP may not be advisable, as it could handcuff the agent, especially if new or existing life sustaining treatments are not identified in the HCP. In my opinion, verbally expressing to your agent and others (as it is permitted by the HCP) your wishes about life sustaining treatment is a much better option.

When one creates an estate plan, a “simple” Last Will and Testament (LWT) is frequently the document that first comes to mind. The concept of creating and funding a trust, specifically a Revocable Living Trust (RLT), may sound daunting. Yet, there are many advantages to using an RLT. Below are 3 key reasons why an RLT is an excellent vehicle to plan for your future.

1. It Gives You Control
With an RLT, you can be both the creator and the trustee. You maintain full control over the assets in the trust during your lifetime. As the circumstances of your life change, you can amend your RLT (e.g., change who the beneficiaries are), remove or appoint successor or co-trustees, and/or revoke the trust at any time. The assets in the trust remain taxable to you personally, and real property in the RLT will get a step-up in cost basis to fair market value as of your date of death, thereby reducing or eliminating capital gains consequences for your beneficiaries.