What is the purpose of a living will?

Study for the Canadian Institute of Financial Planning Exam. Utilize flashcards and multiple choice questions, each equipped with hints and explanations to aid your preparation. Get ready to conquer your exam with confidence!

A living will serves the important purpose of outlining an individual’s preferences for medical care in scenarios where they are unable to communicate their wishes, typically due to incapacitation or serious illness. This document becomes particularly vital in situations where critical decisions about life support, resuscitation, and other medical interventions must be made.

By specifying one’s healthcare preferences in advance, a living will alleviates the emotional burden on family members and healthcare providers who might otherwise be faced with making difficult decisions without guidance. This clarity ensures that the individual's values and wishes are respected in life-threatening situations, leading to peace of mind for both the patient and their loved ones.

In contrast, other options address different aspects of estate planning and personal management. Distributing assets after death, designating a financial executor, and minimizing estate taxes are functions related to wills, power of attorney documents, or comprehensive estate plans, rather than the specific intent of a living will.

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