The need for a will as a key component of your estate planning may seem obvious. You’d be surprised, though, by the number of people — even affluent individuals — who don’t have one. Mostly, because of a common misconception: a revocable trust (sometimes called a “living trust”) obviates the need for a will.

Purpose of planning a will

Revocable trusts aim to avoid probate and distribute your wealth quickly and efficiently according to your wishes. But even if you have a well-crafted revocable trust, a will serves several important purposes, including:

• Appoint an executor or personal representative you trust to oversee your estate, rather than leaving the decision to a court
• Name a guardian of your choosing, rather than a court-appointed guardian, for your minor children
• Ensure that assets not held in the trust are distributed among your heirs according to your wishes, rather than a formula prescribed by state law

The last point is important, because for a revocable trust to be effective, assets must be titled in the name of the trust. It’s not unusual for people to acquire new assets and put off transferring them to their trusts or simply forget to do so.

To ensure that these assets are distributed according to your wishes, rather than a formula mandated by state law, consider a “pour-over” will. It can facilitate the transfer of assets titled in your name to your revocable trust.

Make it your decision, not your state’s

Assets that pass through a pour-over will must go through probate, which is preferable to not having a will. Without a will, assets are distributed according to your state’s intestate succession laws rather than your estate plan provisions.

Hopefully, you already have a sound estate plan in place to protect the interests of your heirs. But that doesn’t mean you’re completely in the clear. Reviewing your estate plan often is just as important as creating one in the first place. Contact our RRBB accountants and advisors with questions regarding your will or overall estate plan.

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