Estate planning is essential to protecting your assets and ensuring your wishes are honored. Yet, many people delay creating a plan due to confusion about foundational tools like wills and trusts—or the consequences of dying without either (intestate).

Here's a detailed comparison of what happens when you pass away intestate, with a will, or with a trust. For simplicity, let's assume you have two children and no spouse.

1. Dying Intestate: No Will or Trust

If you die without a will or trust, state laws determine how your assets are distributed through a process called probate. This public process opens your financial and personal affairs to public scrutiny.

Key Outcomes of Dying Intestate

• Probate Process: The court appoints a personal representative to manage your estate, settle debts, and distribute remaining assets.
• State Law Determines Inheritance: Typically, assets go to a surviving spouse, descendants (children or grandchildren), or other relatives based on state law.
• No Control Over Timing or Restrictions: Adult children receive their inheritance outright, while minors have their assets managed by a court-appointed guardian or conservator until adulthood.
• Guardian for Minor Children: The court decides who will raise your minor children, which may not align with your wishes.

The Bottom Line:

Dying intestate leaves critical decisions—like who inherits your assets and who raises your children—in the hands of the court. Additionally, probate is time-consuming, costly, and exposes your personal affairs to public records.

2. Dying With a Will

A valid will ensures your assets are distributed according to your wishes rather than state laws. However, your estate still goes through probate, albeit with more control over the process.

Key Benefits of a Will

• Control Over Asset Distribution: You can specify how and to whom your assets should be distributed.
• Create a Testamentary Trust: A will can include instructions to establish a trust after your death, enabling you to set restrictions or guidelines for inheritance.
• Nominate a Guardian for Minor Children: While the court must approve your nomination, your preferences are considered.

The Bottom Line:

A will provides more control and clarity over your estate, but it still requires probate, meaning your affairs remain public and subject to court oversight.

3. Dying With a Trust

A properly funded revocable living trust bypasses probate entirely, keeping your estate private and streamlined.

Key Benefits of a Trust

• Avoid Probate: Assets in a trust are distributed privately, saving time and costs associated with probate.
• Flexibility and Control: You dictate how and when beneficiaries receive their inheritance, providing safeguards against misuse or outside claims.
• Private Process: Unlike probate, trust administration is not part of public records.
• Continuity in Management: You can appoint a successor trustee to manage your assets if you become incapacitated or after your death.

Critical Considerations:

• Proper Funding Is Essential: Assets must be retitled in the trust's name, or the trust's benefits are lost. A pour-over will can transfer unallocated assets to the trust after death but may still require limited probate.

The Bottom Line:

A trust offers the most control, privacy, and efficiency, especially for complex estates or if you want to protect minor children's inheritances.

Will vs. Trust: Which Is Right for You?

• Choose a Will if you want a simple plan to guide asset distribution but don't mind the public probate process.
• Choose a Trust if you want to bypass probate, maintain privacy, and control how beneficiaries receive their inheritance.
• Best Option: Combine both a trust and a will (a pour-over will) to ensure all assets are covered.

Take Action: Protect Your Loved Ones Today

Don't let confusion about wills, trusts, or intestate succession keep you from creating an estate plan. The best plan is one tailored to your specific needs, whether it's a will, a trust, or a combination of both.

📞 Contact us today to schedule a consultation and start building a plan that works for you and your family.