Wills, Trusts, & Titling: Avoiding Probate Potholes
When it comes to protecting your family and your wealth, the conversation often begins with investments. But even the best investment plan can run into unexpected roadblocks if your estate plan isn’t aligned. The way your accounts are titled—and whether or not you have proper wills and trusts in place—can make the difference between a smooth transfer of assets and a costly, time-consuming probate process.
Why Probate Matters
Probate is the legal process of settling an estate after death. While it serves an important function, probate is often public, expensive, and slow. Assets may be tied up for months—or even years—before beneficiaries receive them. For families, this delay often creates unnecessary stress during an already difficult time.
The good news: with proper planning, much of probate can be avoided.
The Role of Wills and Trusts
A will is the foundation of most estate plans. It specifies who will inherit your property and names guardians for minor children. But a will alone doesn’t bypass probate. Instead, it guides the probate court in distributing your assets.
A trust, on the other hand, can move assets outside of probate altogether. By transferring ownership of accounts, real estate, or other assets into a trust during your lifetime, you ensure that those assets can be managed and distributed directly to your beneficiaries according to your instructions. Trusts can also provide privacy, reduce taxes in some cases, and offer more control over how and when heirs receive their inheritance.
Titling and Beneficiary Designations
Even the most carefully drafted trust or will, can be undermined if your account titling isn’t consistent. For example:
A joint account with rights of survivorship passes directly to the surviving owner, regardless of what a will says.
Retirement accounts and life insurance policies transfer according to beneficiary designations, not your will or trust.
Accounts titled solely in your name with no designated beneficiary will almost always go through probate.
That’s why reviewing how each account is titled is critical. Aligning titling with your overall estate plan prevents conflicts, delays, and unintended outcomes.
Practical Next Steps
Estate planning isn’t a one-time task. As your life changes—marriage, children, retirement, new property, business ownership—your plan needs to evolve too. A regular review with your wealth advisor and estate attorney ensures everything stays aligned.
Action to take today: Review your account titling and beneficiary designations. Make sure they reflect your wishes and match the instructions in your will or trust. This simple step can prevent your loved ones from facing the unnecessary burden of probate potholes.
Let’s start the conversation.
If you need any guidance or help. Let us know.
— The Stahlnecker Team
