By Eva Mor, PhD
    [2009]

Will
The will is an instrument to leave instructions on how an individual wants his or her estate to be distributed after their death.  It may be set up to include a trust, and usually includes an executor.
Trusts
Trusts come in many shapes, sizes, and forms; they can be structured to meet your special needs.  But in general, all trusts have three elements: a grantor, a beneficiary, and a trustee. The following are short descriptions of the three:
The person or institution who transfers assets into the trust.
The person or institution who will receive money or other assets from the trust, according to the terms you are establishing in the trust.
A person or an institution that you designate to carry out the duty to manage, invest, and distribute assets in the trust.
The directive instruments below are some of the ones you can use to serve your needs, and situation:
Testamentary Trust
This is a trust that does not take effect until after the death of the creator of the will. This trust can be used if you choose not to leave the moneys to your heirs outright.  When forming this trust, you may want to designate a trustee to manage the trust, and oversee the payout from trust, in the way you desire.
Irrevocable Trust
This is a trust which, once it is created, may not be revoked or amended by the person that establishes this trust.  Most such trusts are used for income, gifts, or estate tax planning, are irrevocable in order to gain the tax advantages.
Revocable Trust 
This type of trust can be subject to being revoked or amended by the person who is establishing this trust.  This type of trust is often used in cases when the primary objective is to maintain privacy during the grantor’s life or after his or her death.
Living Trust
A living trust transfers property, stocks, and other possessions from one person to another. That is, to a living person.  Using this instrument, one avoids probate and also is protected in case they are incapacitated.  A revocable living trust gives the person creating the trust the right to change the terms of the trust, in part or the whole, or to dissolve the trust altogether.
Charitable Remainder Trust
This type of trust is created as an irrevocable trust to provide income or annuity payments for a beneficiary. 
Insurance Trust
This type of irrevocable trust holds life insurance policies on one or more individuals.  It is often used to exclude life insurance proceeds from estate taxes.  When the person who is insured dies, the trust receives, manages, and/or distributes the proceeds.
Trustee and an Executor
A trustee and an executor can be a family member, friend, lawyer, or any trustworthy person who is charged with overseeing the execution of your will.  The executor will distribute the will as per your written instructions, as well as pay any debts, taxes and expenses.
Letter of Instruction
This document, prepared for the beneficiaries of the will or trust, is meant to serve as a guide for closing out the affairs of the individual upon their death.  This document should be consistent with the will or trust. It also should include direction and instructions as to the funeral and the list of people that the individual would like to be notified upon their death. It is also prudent to have a list of all the individual’s possessions attached to that document.
Durable Power of Attorney
This instrument gives another person the right to sign his name to any business transaction in your name; it also gives them the power over all your assets.  This document can only be valid if it is prepared while the person signing over this power of attorney is fully competent mentally, and can be terminated at any time by written request.
Probate
Probate is a state court procedure that oversees the administration of your estate, or at least the property in your estate.

Regardless if you are in your forties, a baby-boomer, or in your seventies and eighties, we all need for our own protection as well as for our loved ones, to put in place clear and specific guidelines as to how and to whom we like to leave our estate.

About the Author
Eva Mor, PhD, an epidemiologist and specialist in gerontology and health care management, has worked with the elderly for more than 23 years. She holds an M.A. in Gerontology and Health Administration.
 
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