The 2025 Estate Planning Report from the website Trust & Will revealed that a majority of Americans (83%) recognize the importance of estate planning, yet only 31% actually have a will.
When someone passes away, their money, property, and belongings don’t just disappear. These assets are passed on to others. This is known as succession or succession of property, and it is an important part of estate law. There are different succession laws, but they all have clear rules about who receives what, whether or not someone leaves a will.
It's also important to realize that the laws on who gets what when someone dies can be different depending on the state. For example, under the laws of succession of property in Louisiana, the state decides who inherits a person's estate.
Let’s understand the different types of succession to avoid confusion, reduce conflict, and properly follow a loved one’s wishes regarding the distribution of assets and properties.
Types of Wills and Their Impact on Succession
Wills are significant in deciding how your estate will be passed on after your death. The different types of wills will affect a succession differently.
A simple will merely expresses your wishes regarding the disposition of assets so that your heirs may easily understand them. A testamentary trust will go further in that it creates a trust upon your death, enabling control over when and how beneficiaries receive assets.
A living will deal with medical issues rather than estate distribution, so it is also an important part of your planning. Some states accept holographic wills that are written by hand and signed, while others may not, saying that they aren't formal enough.
If you are an heir but not yet of legal age, you should learn how to claim your minor estate. Many states have a simpler way for heirs to get their assets without going through a complete probate. These procedures can let surviving family members move property more quickly and for less money.
Knowing these types helps one choose a will that manages the estate as desired.
Intestate Succession: What Happens When There’s No Will
If someone dies without making a will, the property is not automatically distributed according to the wishes of the deceased but according to the laws of that particular state.
The estate will usually go to the closest relatives, which include the spouse and sometimes the children. In the absence of any closer relatives, the estate would then go to more distant relatives, such as siblings or parents.
In case no relatives turn up to stake a claim, the state becomes the owner. This outcome, which results in the estate being lost to the government, usually takes longer and becomes complicated until the surviving family members finally sit down and reconcile their differences.
To avoid such a terrible blow, the most important thing to do is to make a will: in accordance with it, your will is fulfilled, guaranteeing a smooth course for his or her distribution.
The Role of Trusts in Estate Planning
Trusts are established as an essential tool in estate planning to hold and transfer assets during an individual's lifetime and upon their death. Within a trust, a person may express clearly how their assets are to be treated. They need to ascertain that the estate is carried out in accordance with their wishes.
Avoiding probate allows beneficiaries to bypass delays and costs. They also serve to protect assets from creditors and afford controlled care of minor children or dependents.
Trusts might be considered a bit flexible since the terms may be modified as and when changes in personal, family, or financial situations arise.
Consultations are necessary with an estate planning attorney to see whether the trust has been properly carried out with an eye toward its intended purposes or goals, whichever way the parties have decided-revocable or irrevocable trust.
The Process of Probate and Its Importance
Probate can be intimidating, but it is the process that carries out the wishes of the deceased relative and oversees the proper distribution of assets.
It is through probate that the court determines the validity of a will, appoints an executor, and supervises the distribution of assets. You will be required to collect all necessary documents, such as the will, financial statements, and land titles.
The executor then discharges all debts and pays taxes before transferring the estate to the beneficiaries. The law helps avert conflicts by clarifying what was intended by your loved one.
Probate gives the estate its own public advertisement so that transparency is assured throughout the whole process. The whole probate process should not be rushed to have a smooth transition and properly honor the legacy of the deceased.
Understanding Estate Taxes and Their Implications for Beneficiaries
Estate taxes could take a significant amount of your inheritance from a family member who has passed away. The estate may have to pay taxes or be sold if that individual dies, depending on how much it is worth.
A significant portion of your inheritance is at risk if the estate's value exceeds the exemption limit. It is important to learn how these taxes work so they could be accounted for when drafting your estate plan.
You may inevitably need to convert your properties into cash so as to pay the assessed tax. You can lower your inheritance through this conversion process. You need to hire an estate attorney or a tax expert for relief.
Knowing how the estate's taxes work and what they mean for the future will help you prepare and avoid avoidable risks.