A trust allows you to have more control over the money you leave to someone than your will does. For example, if you leave money to a young child, it can be put into a trust and used only for education, or dispersed once a child reaches a certain age. A trust also protects the money from creditors since it cannot be taken from the beneficiary to pay debts.
Powers of Attorney
If you are unable to make legal decisions, someone will need to make these decisions for you. Deciding who this person will be in advance is called giving someone power of attorney. There are two main types of powers of attorney. A durable power of attorney gives a person, or people, authority to manage your finances and other legal affairs for you if you are not capable of managing them yourself. A health care directive is a power of attorney that allows the person you designate to make health care decisions for you if you are unable to make those decisions yourself.
A living will is a clear statement about your wishes regarding artificial life support. If you’re unable to make medical decisions for yourself, a living will directs your power of attorney in what choices to make.