Think a Will Is Enough? Here’s What Could Still Happen to Your Money

Many of us draft a will to outline our final wishes: my surviving spouse gets all the money, John gets the car, and Kathy gets the jewelry. It seems straightforward enough.

However, even with a will, your family may wind up going through the court and waiting months for assets to be released — or disputing the will's validity and fighting over who gets what.

I know this firsthand, as I spent a chunk of my 20s working in estate collections and filing creditor claims in probate court. Executors of the estate — often the grieving next of kin — were surprised to discover the complications, restrictions, and sometimes limited effectiveness of relying solely on a will.

To truly protect your heirs, you need to make the right moves that go beyond simply drafting a will.

What is a will?

A will, or formally a "last will and testament," directs how your assets are divided after you die and names an executor to carry out those wishes.

It governs property and assets like cash, stocks, cars, land, or homes that pass through probate, the legal process of validating the document and settling debts before heirs receive their inheritance.

But wills are not ironclad. Often, other documents — beneficiary forms on retirement accounts, life insurance policies, or jointly owned properties — take precedent, and this is where many problems can begin.

Other important documents you need for estate planning

A complete estate plan helps to plug the gaps that a will alone cannot fill. These documents outline medical decisions, financial control, and plans for assets to transfer without creditor claims or court delays.

1. Beneficiary designation forms

Accounts like 401(k)s, IRAs, and life insurance use beneficiary forms that bypass your will entirely. Keeping them current ensures money goes directly to the right people; otherwise, your ex-spouse could wind up getting everything — something I've seen happen with my own eyes.

2. Revocable living trust

A living trust lets you specify when and how heirs receive funds, protect minors, and skip probate altogether, saving everyone future time and money.

3. Durable power of attorney

This document names someone to handle financial tasks like paying bills and managing investments if you become incapacitated. Without it, courts may appoint a conservator you didn't choose.

4. Health care directive or living will

A living will or health care directive spells out your wishes for life-support and end-of-life care, sparing your family from agonizing guesses. Most states provide free templates through their health departments.

5. HIPAA authorization

This allows loved ones or your health-care proxy to access medical records and speak with doctors when you can't. Without it, privacy rules can block information, making it challenging for family members trying to make crucial decisions in your stead.

6. Testamentary trust

A testamentary trust is created within a will. Often called a "trust for minors," it sets up protections for minor children and heirs who shouldn't receive large lump sums at once.

It's sometimes confused with living trusts, which take effect while you're alive and can help your estate avoid probate. Testamentary trusts live within your will and only go into effect after you die.

7. Pour-over will

This type of will acts as a safety net by automatically moving any assets you forgot to title in your living trust into it at death to keep your estate consistent.

8. Letter of intent or final wishes memo

A personal, often informal letter to your executor detailing funeral plans, digital passwords, or sentimental instructions. It isn't legally binding, but it provides valuable clarity, explaining sticky situations like why parents chose to leave one child with a bigger inheritance.

How to start planning

You can start planning today with a simple checklist.

1. List all assets – bank, brokerage, retirement, property, insurance.
2. Name beneficiaries and review forms every few years.
3. Pick fiduciaries – executor, trustee, and financial/medical agents.
4. Consult an estate attorney to align documents with state law.
5. Store copies securely and share access with your executor.
6. Revisit after life changes like marriage, divorce, or birth of a child.

Bottom line

A will is a crucial document, but it's just one piece of the puzzle. Pair it with trusts, directives, and updated beneficiary designations to help ensure your wishes actually happen.

And as one final parting tip, remember to continually update your will. Many people draft a will once and then never revisit it. Not only can this negligence exclude loved ones as family dynamics change, but it may not be legally binding if you move to a different state or if tax rules and inheritance laws change.

As with all retirement planning, it's a smart idea to meet with a professional to lay out a plan and then make regular updates as needed.

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