What A Will Does Not Do

Most people know that a will allows you to specify who receives your assets after you die. However, many are surprised to learn what a will does not do.

It does not avoid the costs, delays, and publicity of probate

Probate costs take 3-8% or more of your assets. The process also takes time- from nine months to two years. And, because probate is public, any “interested party” can read your will, see what you owned, who you owed, and who will inherit the assets.

A trust in a will (called a testamentary trust) does not avoid probate. The will must still be probated before the Trust can go into effect.

It does not prevent court control of assets at incapacity

It can only go into effect after you die. If you become incapacitated and unable to handle your financial affairs, your spouse or other family members cannot automatically step in for you. Only a court appointee can conduct business on your behalf. This ongoing court process can be expensive, embarrassing, time consuming, and difficult to end if you recover. Plus, it does not replace probate when you die.

It does not control all your assets

It also does not control most jointly owned assets and those with beneficiary designations. When you die, these assets automatically go to the surviving joint owner or person you have named as beneficiary. (This is assuming, of course, that the individual is alive, competent, and an adult at that time). This can cause one person to receive more or less than you intended, and can even cause you to unintentionally, disinherit someone.

It does not prevent court control of assets left to minors

If you leave assets to a minor child or grandchild in your will, the court will set up a costly guardianship to “protect” the child’s assets until he/she reaches legal age. Including a trust can help prevent this, but the will must be probated before the trust can even go into effect.