Many people believe that their will is the sole defining document for distribution of all their assets after their death. While the will is an important document and goes a long way to establish an estate plan, it cannot, and frequently does not, control the distribution of all assets.
Every estate has two kinds of assets – probate assets and contract assets. Probate assets are generally owned unconditionally and are distributed at death according to a will. Contract assets, such as life insurance, 401ks, IRAs and revocable living trusts state in the contract what is to happen to those assets…