Why “Listen & Act”? Many individuals go to the trouble and expense of creating Wills and Trusts to carry out their after death wishes but then fail to complete an equally important part of the estate planning process. For example, they might create a revocable living trust (RLT) but then fail to fund it with land and brokerage accounts, put in the name of the RLT. The consequences of not funding your RLT can lead to your family members having to deal with probate and the related costs.
Note, this article does not address avoiding or reducing estate taxes. Why? As of 2026, the U.S. estate tax exemption is $15 million per individual ($30 million for married couples). Even though the estate tax may be eliminated for most estates, there are still many aspects of estate administration that bear serious consideration.
Consider a somewhat typical example: Ada Born, age 89, lives in an assisted living facility near her son, Stu Born. Ada has approximately $1 million in brokerage accounts, bank accounts and CDs titled in various ways. Some accounts are joint with rights of survivorship (JTWROS) with her children. The bank account documents specify that 80% of such accounts go to Stu, the remaining 20% is for Star Born, Ada’s daughter. Since Ada’s late husband did virtually no estate planning, there was an unnecessary probate of assets left in his individual name. Stu handled his father’s intestate probate and does not want to go through probate again when Ada dies.
Ada paid an attorney to prepare a Will, RLT, and Durable Powers of Attorney for herself. The attorney discussed the need to retitle Ada’s accounts (which retitling is often not done). It was always Ada’s intent that her two children (Stu and Star) share equally in all of her assets. The attorney pointed out that assets in accounts titled as “Joint with Rights of Survivorship” will not be distributed according to the terms of Ada’s RLT — instead the bank account records will control.
One of the many problems with such joint ownership is should Stu or Star die unexpectedly young, not only would they not receive anything from such assets, but their families — the grandchildren of Ada — would potentially receive nothing as well. That would not have been what Ada intended.
Suppose Stu and Star survive Ada. In that case with regards to assets in JTWROS accounts, the wording on the bank’s account records controls and Stu gets 80% of the funds in such accounts and Star gets the remaining 20%. Unfortunately, an additional 5% of Ada’s money is held in an account in her name only. This 5% will go through probate and then eventually pour over to Ada’s heirs based upon the wording of Ada’s Will, along with the various fees and probate costs passing to Stu and Star. Is this what Ada wanted? Clearly not. The RLT states that the two children are to share equally. Could Ada’s intentions have been achieved? Yes, easily. How? Retitle all of her accounts and assets in the name of her RLT! As simple as that sounds, this advice is too often ignored.
It is hoped this article causes those in the position of the Borns to not be stubborn and get their assets retitled into their RLT’s, so their planning objectives will be accomplished.