FPT - Section 12: Frequently Asked Questions

What happens when I die without an estate plan?
If you die without a will (called dying "intestate"), state law determines who inherits your property. These intestacy laws typically give property to your spouse and children in prescribed percentages, but the distribution may not match your wishes. The court will appoint an administrator to manage your estate, who may not be the person you would have chosen. Most importantly, the court will appoint a guardian for your minor children without knowing your preferences. Creating a will ensures your wishes are followed.
What’s the difference between a will and a trust?
A will takes effect only after death and must go through probate court. A trust can take effect during your lifetime and typically avoids probate. Wills are simpler and less expensive to create but offer less flexibility and protection. Trusts are more complex and expensive but provide better asset management, privacy, and control, particularly for minor children. Many people use both: a trust for major assets and a pour-over will as a backup.
What if the person I name as guardian/successor trustee doesn’t want to serve when the time comes?
No one can be forced to serve as guardian or trustee. When selecting guardians or successor trustees, have thorough conversations with them to ensure they understand what is involved and are truly willing to serve. Name alternate guardians in case your first choice cannot or will not serve. Recognize that circumstances change, and someone who agrees today may be unable to serve years later due to health, finances, or family situation. Review your guardian nominations and successor trustee selections periodically.
Can I make handwritten changes to my will?
No. Making handwritten changes to a will can invalidate it entirely or create uncertainty about your intent. Some states recognize holographic wills that are entirely handwritten, signed, and dated, but most require typed wills with specific formalities. To change your will, work with your attorney to create a proper amendment (codicil) or new will. Never simply cross out provisions or write in changes.
What happens to my business when I die?
This depends on your business structure and planning. For sole proprietorships, business assets pass through your estate like other property. For partnerships, your partnership agreement likely controls what happens. For corporations and LLCs, ownership shares can be transferred to heirs, but you should have a succession plan addressing both ownership and management. Transfer business interests to your trust to avoid probate, implement buy-sell agreements with co-owners, and provide clear instructions to your trustee about business decisions.