Common Estate Planning Questions Part 2: Wills, Trusts, and Probate
Planning your estate can feel overwhelming, but it doesn’t have to be. In Part 2 of our Common Estate Planning Questions series, we’ll explain the differences between wills, trusts, and intestacy, clarify probate requirements, and provide actionable tips to make estate planning a stress-free experience for you and your loved ones.
Wills, Trusts, and Intestacy – What You Need to Know
What Happens If You Die Without a Plan?
Dying without an estate plan, or “intestate,” means your assets will be distributed based on state law. This often leads to:
- Court involvement: Probate is required, delaying distribution.
- Unexpected outcomes: Your assets may not go to your intended beneficiaries.
- Family stress: Legal disputes and delays during an emotional time.
Wills vs. Trusts: The Key Differences
Wills: A will allows you to name guardians for minor children and specify asset distribution, but it still requires probate, which can be lengthy and public.
Trusts: A trust avoids probate entirely, offering a faster, private, and smoother transfer of assets to your beneficiaries.
Understanding Probate
When is Probate Necessary?
The necessity of probate depends largely on how your assets are titled when you die and the total value of assets that are in your personal name at the time of your death. Assets that are solely in your name with no beneficiary designation must go through probate.
Exceptions include:
- Jointly owned property that automatically passes to the surviving owner.
- Assets with named beneficiaries like life insurance policies.
- Assets held in a properly funded living trust.
How to Avoid Probate
- Use a living trust to manage assets.
- Name beneficiaries on accounts like life insurance and retirement funds.
- Establish joint ownership where appropriate.
Proper planning ensures your family can avoid unnecessary court processes.
Making Estate Planning Manageable
Overcoming Discomfort About Planning
It’s natural to avoid conversations about death and money, but failing to plan can create unnecessary hardships.
- Without a plan: The court decides who manages your care and assets, which may not align with your wishes.
- With a plan: You control your legacy, making things easier for your family.
Steps to Minimize Stress for Your Family
The best way to minimize stress for your family is to create a clear, comprehensive Life & Legacy Plan before anything happens to you.
- Get clear about what you own and what would happen to everything you own and everyone you love.
- Make informed, empowered choices about who should receive your assets, who should be in charge of carrying out your wishes, and how you want it all handled.
- Regularly review and update your plan as your life changes, ensuring your assets are properly managed.
How We Help You Create Peace of Mind
As your Personal Family Lawyer® Firm, we help you create a Life & Legacy Plan that protects your family’s future. From making informed decisions
to ensuring your plan is updated regularly, we provide the guidance and support you need. Don’t leave your family’s future to chance.
