Wills and Trusts: What You Need to Know

What Is a Will?

A will is a legal document that says who gets your property when you die. In it, you name an executor, the person who will handle your affairs, pay your debts, and distribute what you own to the people or organizations you choose. If you have minor children, your will is also where you name a guardian whose responsibility is to care for their safety and wellbeing.

A will only takes effect after you die, and only through a court process called probate. The court reviews the will, confirms its validity, and oversees the executor as they carry out its terms.

What a Will Does Not Cover

A will only controls property that is titled in your name when you die. It does not control:

• Life insurance or retirement accounts with a named beneficiary
• Property owned jointly with someone else
• Bank or investment accounts with a payable-on-death or transfer-on-death beneficiary listed

Those assets pass directly to whoever is named, regardless of what your will says.

The Downsides of Probate

Because a will only works through the probate court, everything it covers has to go through the court process first. Probate is public, meaning anyone can see what you owned and who received it. It also takes time, often a year or more, and involves court costs, attorney’s fees, and filing fees before your family receives their distribution.

A will has no effect while you aree living. If you become unable to manage your affairs due to illness or injury, a will provides no help. That’s what powers of attorney are for. Without a valid power of attorney, someone would need to petition a court for a guardianship or conservatorship to manage your finances on your behalf.

A Different Option: The Revocable Living Trust

A revocable living trust is a legal arrangement you create during your lifetime. You transfer ownership of your assets into the trust, and you control it as trustee for as long as you’re able. You can change or cancel it at any time. For a closer look at how this works, see our article on revocable living trusts.

If you become incapacitated, the successor trustee you named steps in immediately to manage the trust assets, no court involvement required. When you die, that same successor trustee distributes the assets to your beneficiaries according to your instructions, without probate court involvement.

Because the trust already legally owns the property, there is typically nothing left for a court to oversee. This allows for more efficient distribution, lower cost, and privacy for your family.

Talk to an Attorney

Every family’s situation is different and your estate plan will depend on your assets, goals, and family circumstances. Our attorneys can walk you through your options and help you build an estate plan that protects your wishes and your family. Contact us to schedule a consultation.