Estate Planning Basics: Wills, Trusts, Beneficiaries and Your Financial Plan

Estate planning can sound like something reserved for the ultra-wealthy. In reality, if you own a home, have investment or retirement accounts, have children or simply want a say in what happens to your assets, an estate plan deserves a place in your broader financial strategy.

A well-designed estate plan helps answer important questions: Who should receive your assets? Who would make decisions if you couldn't? And how can you make the process easier for the people you leave behind?

Understanding a few estate planning basics is a good place to start.

Wills: Putting Your Wishes in Writing

A will outlines how you want certain assets distributed after your death and allows you to name an executor to carry out your wishes. For parents, a will can also be an important place to nominate a guardian for minor children.

But having a will doesn't necessarily mean your estate will avoid probate—the legal process used to administer and distribute certain assets after death.

For California residents, this distinction can be particularly important. As of April 1, 2025, certain estates with up to $208,850 in qualifying personal property may be eligible for a simplified transfer process rather than full probate. A separate process may be available for a decedent's California primary residence valued at up to $750,000. Eligibility and which assets count toward these limits depend on individual circumstances.

Trusts: More Control Over Your Assets

A trust can provide greater control over how and when assets pass to your beneficiaries.

One common option is a revocable living trust. Assets properly transferred into the trust can generally pass to the beneficiaries named in the trust without going through probate.

Trusts may also help families establish specific instructions for how assets are managed or distributed, for example, providing for children over time rather than leaving an inheritance all at once.

Importantly, creating a trust is only part of the process. It generally needs to be properly funded with the intended assets to work as designed.

Beneficiary Designations: Small Detail, Big Impact

Some assets don't pass through your will at all.

Retirement accounts, life insurance policies and certain financial accounts can be transferred directly to the beneficiaries named on those accounts. That's why keeping your beneficiary designations current is an important part of estate planning.

Marriage, divorce, the birth of a child or other major life changes are all good reasons to review them. It's also important to make sure your beneficiaries, will, trust and broader estate plan work together. Conflicting or outdated instructions can lead to results you didn't intend.

Estate Planning and Your Financial Plan

Estate planning isn't just about legal documents. It's about making sure the wealth you've built is managed and ultimately transferred according to your goals.

Your financial plan may include investments, retirement accounts, real estate, insurance and business interests. Your estate plan helps provide direction for what happens to those assets if you become incapacitated or after you're gone.

That's why estate planning shouldn't happen in isolation. Your financial advisor, estate planning attorney and tax professionals can work together to help ensure your financial and estate strategies remain aligned.

Your Estate Plan Is Part of Your Financial Plan

Building wealth is only part of a financial plan. Thoughtful estate planning helps ensure that what you've built is ultimately managed and transferred in a way that reflects your wishes.

As your life and finances evolve, your estate plan should evolve with them. Marriage, children, a new home, business ownership, significant changes in wealth or changes in tax and estate laws can all be reasons to revisit your strategy.

At Summit, we can help clients connect the pieces of their financial lives—from the wealth they're building today to the legacy they want to leave tomorrow. Contact us today to discuss how your estate plan fits into your broader financial strategy.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.