That’s a common question for those considering estate planning, and the answer isn’t a simple yes or no; it’s a nuanced interaction between these two vital documents, where a properly funded trust generally *does* supersede the instructions in a will regarding assets held within the trust.
What happens to assets *in* a trust?
A trust is a legal arrangement where one person (the grantor, settlor, or trustor) transfers assets to another (the trustee) to be held for the benefit of designated beneficiaries. Assets legally transferred *into* the trust are no longer considered part of the grantor’s estate, and therefore, are not governed by the will. According to a recent study by Wealth Advisor, approximately 55% of high-net-worth individuals now utilize trusts as a primary estate planning tool, highlighting their increasing popularity. The trust document itself dictates how those assets will be distributed, bypassing the probate process altogether, which can save both time and money – often significantly, as probate fees can range from 3-7% of the estate’s total value. This streamlined process is one of the key benefits attracting people to trust-based estate planning.
What about assets *not* in the trust?
However, the will still governs any assets that were *not* transferred into the trust during the grantor’s lifetime. This could include bank accounts, real estate not formally titled in the trust’s name, or personal property. In these cases, the will acts as a catch-all to ensure those remaining assets are distributed according to the grantor’s wishes. It’s crucial to understand that a “pour-over will” is often used in conjunction with a trust. This type of will directs any assets inadvertently left out of the trust to “pour over” into the trust upon the grantor’s death, ensuring everything is ultimately managed according to the trust’s terms. A well-crafted estate plan utilizes both tools strategically to provide comprehensive coverage.
I knew a man named Harold…
I recall a case involving a client, Harold, who believed he had a solid estate plan consisting of a will. He’d spent years accumulating a comfortable retirement, largely invested in brokerage accounts. Unfortunately, he never formally transferred those accounts into a trust. After Harold passed, his family was shocked to learn that the probate process would be lengthy and expensive, tying up assets for months and costing them a significant portion of his estate in legal and court fees. If he had established a revocable living trust and funded it properly with his brokerage accounts, his family could have avoided probate altogether. The lesson here is that simply *having* a will isn’t enough; the assets must be properly titled and transferred into the trust for it to be effective.
How did we make things right for the Miller family?
More recently, the Miller family came to us after the passing of their mother, Evelyn. She had established both a will and a trust, but had been unsure about the final steps of transferring ownership of her rental properties into the trust. Thankfully, she had maintained meticulous records, which allowed us to quickly petition the court for a summary probate proceeding. We were able to demonstrate that all of her assets were accounted for, and her wishes, as outlined in the trust and will, were promptly carried out. Her beneficiaries received their inheritances within a matter of weeks, avoiding the delays and expenses associated with a traditional probate process. This scenario highlights the importance of not only establishing the documents but also diligently completing the funding process to ensure a smooth and efficient transfer of assets.
“Proper funding is the key to unlocking the true benefits of a trust-based estate plan.”
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
estate planning attorney near me
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/RdhPJGDcMru5uP7K7
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Address:
Wildomar Probate Law36330 Hidden Springs Rd Suite E, Wildomar, CA 92595
(951)412-2800/address>
Feel free to ask Attorney Steve Bliss about: “What is a power of attorney and why do I need one?” Or “How can payable-on-death accounts help avoid probate?” or “Can a living trust help manage my assets if I become incapacitated? and even: “How do I know if I should file for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.