Before Aunt Mary passed away in 2023, she did something kinda smart, or maybe a little too complicated—she set up this trust for her nearly $1 million estate. A retired chemistry teacher, right? Never married, no kids. So she thought, hey, let’s make sure my cash lands with my nieces and nephews, Zygmund Furmaniuk among them, along with a few others. Sounds simple, but nah, life had other plans.
Turns out, Zygmund, who’s from Belmont, Mass., and his cousin, who were co-executors, had to deal with a mountain of paperwork. It wasn’t selling the house or sorting the valuables—that was the easy part. The IRAs? Oh boy. Those were in the trust but had no designated beneficiaries. Confused yet? Same.
Zygmund mentioned that if she’d just made them 25% beneficiaries directly on those Fidelity accounts, he wouldn’t have faced this epic saga of forms, which felt about as thick as a small phone book. Wow, remember those?
Anyway, places like Vanguard and Fidelity usually want you to name beneficiaries when you start up an IRA or 401(k). But even that doesn’t always cover everything, which is why having both a will and beneficiaries listed is a good idea.
Now, wills—they’re essential for dividing up the goods like your house and investments when you kick the bucket. No will? Your state decides, and trust me, that’s a tangled mess nobody wants.
Every state has its own game plan for when you leave property without a will. Usually, it goes to the closest relatives—a spouse, parents, or siblings. But then there’s probate court, and time, money, and headaches follow.
Senior research economist Gal Wettstein (ever heard of him?) points out that state defaults might not fit today’s families. Like, stepkids can miss out if they’re not officially adopted. Crazy, right?
With wills involving courts and designated beneficiaries needing some ID and a death cert, the trick is getting to know each institution’s process to dodge that probate detour. Yet, having beneficiaries doesn’t mean you can skip the will, a common misconception people have. Sabino Vargas at Vanguard says it’s all about educating folks, showing them a will’s the real deal, doing a lot more than they realize.
Even small stuff, like naming guardians for kids or pets, happens in a will. Or your cool art, jewelry, or collectibles. Turn that over to the state? No thanks.
So how do you make a will? Estate lawyer or online template, your choice. Marcia Mantell, a retirement consultant, says it’s vital—young folks, housemates, everyone should have one. Even your gadgets could use a named inheritor to keep things out of the probate quagmire.
State laws guide wills, might need a witness, or say you’re of sound mind. If lawyer fees ain’t your thing, grab a PDF and follow your state’s requirements. Just Google “making a will in [your state].” Easy as pie, kinda.
A study by the Center for Retirement Research dives into how wills can change the game, especially for Black and Hispanic families. Pretty eye-opening stuff. In 2020, only two-thirds of households with someone over 70 had a will. White families led the pack in will-making. Those who inherit wealth often pass it on, but here’s the kicker—people of color report fewer inheritances.
Passing down wealth can set families up for homeownership or better schools. Doing it through just your earnings? That’s tough. But wealth? It softens life’s blows, no matter how it gets transferred—trust, will, you name it. Just make sure it gets there.
Zygmund’s takeaways? Read every line of those estate documents, whether from a bank or lawyer. His aunt got what she wanted; everything’s fair, but if they understood the beneficiary and trust dance better, it could’ve been smooth sailing.
