Estate Planning FAQs: Protecting Your Family and Your Legacy

What is the difference between a will and a trust?

A will is a legal document that expresses your wishes for how your assets should be distributed after you die. It goes through probate — a court-supervised process — before your heirs receive anything. A trust is a legal arrangement in which you transfer assets to a trustee to hold and manage for the benefit of your beneficiaries. Assets held in a trust typically avoid probate, pass more quickly to heirs, and remain private. A will is public record once it enters probate; a trust is not.

Do I need a lawyer to create an estate plan?

For a basic will, online tools can work for very simple situations. But for anything involving significant assets, minor children, blended families, business interests, or tax planning, working with an estate planning attorney is strongly recommended. Mistakes in estate documents can be costly and difficult to correct after the fact. A wealth consultant can work alongside your attorney to ensure your financial accounts, insurance policies, and estate documents are all aligned.

What happens if I die without a will?

You die "intestate," and your state's default inheritance laws determine who gets what. These rules follow a fixed hierarchy — typically spouse, then children, then parents, then siblings — and may not reflect your actual wishes. The process goes through probate court, which is public, time-consuming, and can be expensive. If you have minor children, the court will also appoint a guardian — who may not be the person you would have chosen.

Who should I name as my beneficiaries?

Your beneficiaries should reflect your current wishes and life circumstances. Review them after every major life event: marriage, divorce, the birth of a child, the death of a named beneficiary. Remember that beneficiary designations on life insurance, IRAs, and retirement accounts override your will — so keeping them current is critical. Consider naming contingent (backup) beneficiaries as well, in case your primary beneficiary predeceases you.

What is a power of attorney?

A durable power of attorney authorizes someone you trust — your agent — to manage your financial affairs if you become incapacitated. "Durable" means it remains in effect even if you lose mental capacity. Without one, your family may need to go to court to obtain guardianship or conservatorship to manage your affairs — a costly and time-consuming process. A healthcare power of attorney (or healthcare proxy) does the same for medical decisions.

What is probate and why should I avoid it?

Probate is the court-supervised process of validating your will and distributing your estate. It can take months or years, costs money in court and attorney fees, and is a matter of public record. Assets that pass through probate are also potentially subject to creditor claims. Strategies to avoid probate include holding assets in a revocable living trust, using beneficiary designations, and titling assets as joint tenancy with right of survivorship.

How does estate tax work?

The federal estate tax applies to estates above a certain threshold — in 2026, that exemption is $13.61 million per individual ($27.22 million for married couples). Estates below that threshold owe no federal estate tax. However, some states have their own estate or inheritance taxes with lower exemptions. For high-net-worth families, strategies like irrevocable life insurance trusts (ILITs), charitable giving, and annual gifting can reduce the taxable estate.