# Why a Will Is Not Enough: Estate Planning and Your Legacy
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-06-21
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Wills Vs. Trusts: What You Need to Know
Meta Description: Learn about the advantages and limitations of wills and trusts in estate planning, and when each should be used to secure your assets for the future.
URL: https://financedigest.com/why-a-will-is-not-enough-estate-planning-and-your-legacyhtml

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_By_ **_Sabine Franco,_** _Managing Attorney and Owner of The Ambitious Legacy Firm_

**Introduction**

Having a will is a good thing, but it also has its limitations. A will is not enough to ensure that your assets will be distributed in a controlled manner, nor will it [keep your family out of the lengthy court](https://www.financedigest.com/belgian-court-decides-to-keep-eu-corruption-case-suspect-in-detention.html "Belgian court decides to keep EU corruption case suspect in detention") process that is probate. And because of the probate process, a will won’t provide immediate [support for family members who need](https://www.financedigest.com/hung-out-to-dry-smes-need-further-support-to-stay-afloat.html "Hung Out to Dry: SMEs need further support to stay afloat") it.

To guarantee that your assets will be distributed to your loved ones according to your wishes, you need to have an estate plan in place. A will is an important part of that plan, but there are other tools available to make sure your wishes are carried out and that your estate isn’t depleted.

Estate [planning involves preparing to manage an individual’s assets in the event](https://www.financedigest.com/why-no-event-should-be-planned-without-a-social-media-strategy.html "Why No Event Should Be Planned Without a Social Media Strategy") of their incapacitation or passing. Anyone can put an [estate plan into effect](https://www.financedigest.com/gold-london-real-estate-and-the-theresa-may-effect.html "GOLD, LONDON REAL ESTATE AND THE THERESA MAY EFFECT") that will secure their assets for the future. From the time you start your career to when you’re about to [retire is generally an ideal window for estate planning](https://www.financedigest.com/5-annuity-tips-to-know-for-2023-retirement-planning.html "5 Annuity Tips to Know for 2023 Retirement Planning").

While many are beginning to understand just how important it is to have a will, they often don’t go far enough in initiating a complete estate plan. People tend to see wills as “one and done” [ways to plan for the future](https://www.financedigest.com/5-ways-to-protect-your-wealth-for-future-generations.html "5 Ways to Protect Your Wealth for Future Generations") and then overlook tools like trusts, insurance, and other vehicles that can protect assets and provide financial security.

**Wills Vs. Trusts – What to [Know About Each Vehicle and When You Need](https://www.financedigest.com/5-key-things-you-need-to-know-before-hiring-your-first-employee.html "5 Key Things You Need to Know Before Hiring Your First Employee") Them**

_Wills_

A will is a legal [document used to communicate](https://www.financedigest.com/document-redesign-clarifying-communications-for-cx-excellence.html "Document redesign: clarifying communications for CX excellence") who you want to receive the benefit of your assets once you have passed away. It also designates who you want to oversee distributing those assets.

Wills are an important part of an estate plan and have certain advantages, such as giving definitive directions for the distribution of assets as well as instructions for who will care for dependents. And if appropriately drafted, a well-crafted will can reduce the length of the probate process.

Wills also have some significant limitations. They don’t stop you from going through probate. A will [isn’t enough to keep](https://www.financedigest.com/the-challenge-of-keeping-data-secure-why-in-house-security-isnt-enough.html "The challenge of keeping data secure: why in-house security isn’t enough") your family out of court because a will is required to be probated.

One misconception people have about a will is that you don’t have to spend much [time or money](https://www.financedigest.com/netflixs-gaming-foray-will-cost-time-and-money-wall-st.html "Netflix’s gaming foray will cost time and money – Wall St") on the probate process. Probate often takes a minimum of 6 months. It’s also a costly [process that can reduce the size](https://www.financedigest.com/chemical-process-mixers-industry-2021-includes-the-major-application-segments-and-size-in-the-global-market-to-2028.html "Chemical Process Mixers Industry 2021 Includes The Major Application Segments And Size In The Global Market To 2028") of your estate. Probate is also public, which means your assets become a public record. Moreover, it is essential to keep trusted parties properly informed of where your will is and what’s in it.

_Trusts_

Unlike a will, which is a document between yourself and the court, a trust behaves more like a contract between you and the trustee you designate to execute it. The main benefit of a trust is that the [assets](https://www.financedigest.com/u-s-to-move-3-5-billion-in-afghan-central-bank-assets-to-swiss-based-trust.html "U.S. to move .5 billion in Afghan central bank assets to Swiss-based trust") placed in a trust avoid the probate process.

Trusts are an essential part of estate [planning in that they can protect](https://www.financedigest.com/eus-planned-reforms-aim-to-better-protect-power-bills-from-market-swings.html "EU’s planned reforms aim to better protect power bills from market swings") high-value assets from probate as well as estate taxes. They also [offer the flexibility](https://www.financedigest.com/britain-urges-banks-to-offer-mortgage-flexibility-in-cost-of-living-crisis.html "Britain urges banks to offer mortgage flexibility in cost-of-living crisis") to give the trustee specific instructions about how to distribute those assets, especially when leaving assets to minor children.

Many families are unaware of trusts being an option because they’re uninformed of the total value of their assets and feel that a trust isn’t an option for them. Also, the attorney they use to draw up their will may be unfamiliar with setting up trusts.

With 60% of Americans not having a will in place and 55% of Americans [passing away](https://www.financedigest.com/india-to-hold-one-day-state-mourning-on-passing-away-of-queen-elizabeth.html "India to hold one day state mourning on passing away of Queen Elizabeth") without an estate plan, it’s important to make sure you have the proper legal and estate documentation in place to avoid having the state determine what happens to your assets.

**Securing Your Legacy – The Proactive [Steps Families Need](https://www.financedigest.com/british-pensions-step-up-multi-billion-pound-asset-fire-sale-as-need-for-cash-soars.html "British pensions step up multi-billion-pound asset fire sale as need for cash soars") to Take**

The Ambitious Legacy [Firm offers a 4-step road map that we recommend when advising clients on how to build](https://www.financedigest.com/stellantis-to-build-u-s-firm-archers-air-taxi-up-stake.html "Stellantis to build U.S. firm Archer’s air taxi, up stake") an estate plan.

Step one is to evaluate your assets. Go through each asset you have, one by one, and itemize it with its condition and dollar value. Many people are often surprised at their total [net worth](https://www.financedigest.com/air-separation-plant-market-projected-to-expand-at-a-cagr-of-5-to-attain-a-net-worth-of-us-7-9-bn-by-the-end-of-2028-fmi.html "Air Separation Plant Market projected to expand at a CAGR of 5% to attain a net worth of US$ 7.9 Bn by the end of 2028: FMI") simply because they have never looked at it in its entirety before.

[Step two is to examine strategies](https://www.financedigest.com/cellnexs-ceo-tobias-martinez-steps-down-amid-strategy-shift.html "Cellnex’s CEO Tobias Martinez steps down amid strategy shift") for wills, trusts, insurance, long-term care, and retirement. This is a highly [customized strategy](https://www.financedigest.com/the-value-of-customer-centricity-to-c-suite-financial-strategy.html "The value of customer-centricity to C-Suite financial strategy") for each individual. As each person’s needs are different, there is no “one size fits all” approach.

Step three is recommended for everyone, regardless of age or income level. Having a healthcare proxy and [power of attorney is critical so that a trusted](https://www.financedigest.com/trusting-your-gut-how-to-harness-the-power-of-your-business-instincts.html "Trusting your gut: how to harness the power of your business instincts") party can make necessary medical and financial decisions should you be incapacitated.

[Step four is to look at any potential tax issues that can be mitigated or avoided so that as much of your estate](https://www.financedigest.com/from-static-office-to-dynamic-brand-hq-five-steps-to-reviewing-your-real-estate.html "From static office to dynamic brand HQ: Five steps to reviewing your real estate") can be protected as possible.

**Why Estate Planning Will Benefit Legacies**

If there is one overarching advantage to having an estate plan, it’s that it provides peace of mind. It is important to [plan for retirement](https://www.financedigest.com/should-i-roll-my-old-retirement-plans-into-a-roth.html "Should I Roll My Old Retirement Plans into a Roth?") to protect your assets and provide for your loved ones even after you are gone.

But to achieve this peace of mind comes with having some difficult conversations. Discuss your wishes with your family. Then specify those wishes in vehicles like wills, trusts, powers of attorney, and healthcare directives. This removes the ambiguity from estate planning and ensures your desires are known and carried out in the future.

Ultimately, properly evaluating your assets and protecting them using estate planning can build, protect, and provide something everyone hopes to achieve – a lasting legacy and generational wealth.

**About Sabine Franco:**

Sabine Franco, [Managing Attorney and Owner of The Ambitious Legacy Firm](https://www.financedigest.com/asset-management-firms-are-using-ai-to-deliver-higher-returns-for-investors.html "Asset management firms are using AI to deliver higher returns for investors") P.C., leads her team, ensuring that they help clients [create businesses](https://www.financedigest.com/how-to-create-a-pr-plan-and-link-it-to-your-business-marketing-strategy.html "How to create a PR plan and link it to your business marketing strategy"), protect properties, and plan legacies so they can be safe as they pursue their life purpose. With over a decade of experience, Sabine advises clients in [asset protection](https://www.financedigest.com/top-tips-for-protecting-your-assets-in-2020.html "asset protection") and estate planning, so they are preparing and designing the best possible outcomes for their future endeavors. She provides her clients with [trust and estate tools to achieve success with security](https://www.financedigest.com/how-cloud-is-driving-forward-implementation-of-zero-trust-security.html "How Cloud is Driving Forward Implementation of Zero Trust Security"). Sabine has worked in various fields such as business, matrimonial law, [real estate](https://www.financedigest.com/ab-property-marketing-appointed-to-represent-spanish-real-estate-law-specialists-fuster-associates.html "AB Property Marketing appointed to represent Spanish Real Estate Law specialists Fuster& Associates"), and estate planning. At The Ambitious Legacy Firm, she applies each field she has [worked in to kickstart the next generation to help families plan for their futures](https://www.financedigest.com/meetings-in-the-metaverse-how-likely-is-this-the-future-of-work.html "Meetings in the metaverse – how likely is this the future of work?") through legacy and estate planning. Recognized as a “Super Lawyers” rising star for 2022, Sabine has been featured several times on “The Breakfast Club” (New York’s #1 radio show) and the “Earn Your Leisure” podcast, which is among the top five podcasts. She graduated from Hofstra University School of Law. When Sabine is not working with her clients, she provides legal guidance on her Podcast and YouTube show, “The Ambitious Legacy Podcast.” Recently, Sabine has [published her first book](https://www.financedigest.com/publisher-bloomsbury-casts-upbeat-forecast-says-books-affordable-pastime.html "Publisher Bloomsbury casts upbeat forecast, says books ‘affordable pastime’") titled, “You’re Richer Than You Think: A Step by Step Guide to building a lasting financial legacy for your family.” She also manages the legal affairs of a nonprofit organization, “Marie’s Food Pantry,” whose mission is to fight hunger in the poorest neighborhoods of Haiti by providing daily hot meals to the community. Sabine is a wife and mother and resides in Nassau County, NY. To learn more, please visit www.theambitiouslegacyfirm.com.


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