Frequently Asked Questions About Estate Planning & Probate

A: A Will is a single legal document that outlines who gets your assets and who will raise your minor children. An Estate Plan is a broader strategy that includes a Will but also adds documents like Power of Attorney, Healthcare Directives, and often Trusts to protect you while you are still alive but perhaps incapacitated.

A: Probate is the court-supervised legal process of authenticating a deceased person’s Will, inventorying their assets, paying off their debts and taxes, and finally distributing the remaining property to the rightful heirs.

A: No. In fact, a Will is essentially a set of instructions for the probate court. To "avoid" probate, you typically need to use other tools like Living Trusts, joint ownership, or "Payable on Death" (POD) designations on your bank accounts.

A: This is called dying "intestate." In this case, the state’s laws (not your wishes) determine who inherits your assets. Usually, assets go to your closest living relatives (spouse, children, parents), which can lead to unintended results if you have a modern or complex family structure.

A:The Executor (or Personal Representative) handles the paperwork and distribution of your estate. You should choose someone who is:

Organized and good with deadlines.

Financially responsible.

Emotionally stable enough to handle family dynamics.

A: A Living Trust is a legal entity you create to hold your assets. Because the trust "owns" the assets, they do not have to go through probate when you die. "Revocable" means you can change or cancel it at any time during your life.

A: Yes. Estate planning isn't just about money; it's about:

Naming a guardian for minor children.

Making healthcare decisions if you're in an accident.

Ensuring sentimental items (like family heirlooms) go to the right people.

A: A POA is a document that gives someone else the authority to make financial or legal decisions on your behalf if you become unable to do so. Without this, your family might have to go to court to get "guardianship" or "conservatorship" just to pay your bills.

A: A good rule of thumb is to review your plan every 3 to 5 years, or whenever a "Life Event" occurs, such as:

Marriage or divorce.

Birth or adoption of a child/grandchild.

Moving to a different state (laws vary by state).

A significant change in your financial situation.

A: Costs vary by state but generally include court filing fees, legal fees, and accounting fees. It typically ranges from 3% to 7% of the total estate value. This is a primary reason many people use trusts—to save their heirs these costs.

Tip: Many people forget to update their beneficiary designations on life insurance and 401(k) plans. These designations usually "trump" whatever is written in your Will!