How it Works

An estate plan is a group of legal documents that details, in advance, the management and distribution of your assets and the care of your minor children if you pass away or become incapacitated. An estate plan typically includes a trust, a will, and powers of attorney (general and medical).

A trust is a legal entity that holds assets both while you are alive and after you pass away. A trust appoints a trustee to carry out its terms, including distribution standards and conditions. Assets held in trust are not subject to probate, and distribution instructions stay private.

Think of a trust as a detailed plan. If you were around, you would make the decisions about how your children are raised and what happens with your money and things. If you are not, the trust is that plan: who will take care of your minor children, how your money and assets will be managed and distributed, and who is responsible for making sure your wishes are followed. A good estate plan also prevents court involvement and supervision during the administration of your assets — which lowers cost and reduces stress for your family.

A will is a legal document that takes effect only upon your death. It provides instructions for distributing your assets to your designated heirs, but it does not manage your assets if you become incapacitated while living, and it does not avoid probate for assets like real estate.

Whether you need a trust, a will, or both depends on your situation. Typically, if you own real estate, have assets over $10,000, or have children, a trust is recommended: assets held in trust can be managed for your children, avoid probate, and give your heirs added protection. If the beneficiary of a life insurance policy is a minor, a trust is the best way to make sure the money is managed properly until they come of age.

The cost of an estate plan varies greatly depending on how and where you get it done. TruWill's flat-fee plans are designed to cost far less than the traditional attorney route — get your free quote to see your exact flat fee up front.

Without an estate plan, your family has to work out difficult questions on their own — who raises your kids, and what happens to everything you own — and a probate court makes the final decisions. That process costs money and takes time.

Each state has laws — called intestate laws — that dictate how your estate is administered when there is no plan. They typically require court involvement before anyone even has authority to act, and a statute or a judge determines exactly what happens with your assets and who takes care of any minor children.

The expensive, time-consuming way: meet with a lawyer, wait for drafts, and go back to the office to sign. With TruWill, you create an account, securely provide your information online (or over the phone with our help) using documents designed and drafted by licensed attorneys, and your finished plan ships to you with instructions to sign, get notarized, and finalize.

A trustee is a trusted person who acts as custodian of the assets held in a trust, responsible for managing and administering them per the trust's instructions. You are the trustee while you are living; after you are gone, someone you appoint takes over.

A beneficiary is the person or entity you designate to receive assets after your death. Typically assets pass to a surviving spouse, then to children — but you are free to direct your assets however you choose, including the age at which a beneficiary becomes eligible and how much they receive.