September 24, 2025
Just Having A Will Won’t Guarantee Your Money Goes To Loved Ones When You Die—Here’s Why
The lack of preparedness in having a will, trust, and estate planning documents trickles down from generation to generation.
It’s not uncommon for people to wait until it’s too late to start estate planning if something happens to them. Still, experts are highlighting the ways of having a trust in place to guarantee your beneficiaries are taken care of, CNN reports.
While many people think having a will with named beneficiaries fast-tracks assets to them, it’s not always that simple. Jeffrey R. Gottlieb, a Chicago-based estate planning attorney, notes that an additional step is missing. “If you have designated beneficiaries on an account and they’re living, that trumps your will or trust — unless the beneficiary designation is to the trust,” Gottlieb said.
The process is beneficial as it facilitates the quick transfer of money from an identified account to the beneficiaries. The reason is that the named beneficiaries on the account won’t be listed in the estate, which requires going through the court process of probate. A court process of probate is defined as what authenticates your will after passing away and permits the net proceeds of your estate to be given to your heirs once all debts and expenses are finalized and paid for.
Financial speaker and educator Anthony O’ Neal often speaks of the importance of putting your affairs in a trust on his show, “The Table With AO.” During an Oct. 14, 2024, episode, O’Neal opened up about putting assets in a trust – both for his business and personal brand. “You can literally put anything inside of an estate,” he said while speaking with Lillie N. Nkenchor, Esq., LL.M.
A trust provides more control over how your assets, like a 401(k), are distributed. If children are directly named on your 401(k) account, funds would be paid out right away. However, if a trust is set up for them and the trust is named as a beneficiary of your 401(k), it can dictate the terms and conditions under which the money is managed and when it can be paid out.
Several people across the nation have failed to have an estate plan and trust, as Nkenchor said, “a lot of people kind of stick their head in the sand because we’re speaking of a time when people aren’t here, and it makes them uncomfortable.” According to Trust & Will, the lack of preparedness trickles down from generation to generation. The Silent Generation, comprising people born between 1928 and 1945, is the most prepared, at 66%, followed by baby boomers, born between 1946 and 1964, at 44%.
However, Generation X, born between 1965 and 1980, has a 26% chance, which is still behind the national average. Millennials, at just 22% and born between 1981 and 1996, have a will, but over 60% don’t have any estate planning documents in place. In last place is Gen Z, born in the late 1990s and through the late 2010s, with only 15% having a will, labeling them as the least prepared.
Another way to ensure your loved ones are protected and your wishes are upheld is to keep your beneficiary list up to date, particularly when a major life change occurs, such as divorce, marriage, or having children.
“It’s very important to update your beneficiary designation whenever there’s a (big) life change,” Gottlieb continues.
Suppose the person listed as your beneficiary passes away before you. There is a chance that the person next in line to receive the share of money may depend on what was specified when filling out the beneficiary form.
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