Scenario 86: What is the primary purpose of a 'living will' (or advance directive) in estate planning?

Question: Scenario 86: What is the primary purpose of a 'living will' (or advance directive) in estate planning?

Answer options:

• To distribute assets to heirs before death. ✅ To declare one's wishes regarding medical treatment and end-of-life care.
• To appoint an executor for the estate.
• To legally challenge the validity of a will.

Correct answer: To declare one's wishes regarding medical treatment and end-of-life care.

Explanation: A living will or advance directive is a legal document that expresses a person's wishes regarding medical treatment and end-of-life care, should they become unable to communicate their decisions. The correct answer is "To declare one's wishes regarding medical treatment and end-of-life care.". This capacity-fill scenario 86 reinforces the same competency for the cfp bank and follows the certified explanation standard.