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Introduction 
People want to do the right thing for themselves and their families. But, all too often, their good 
intentions have tragic results. The sad part is these unhappy endings are often avoidable. If they 
had just known what could happen, chances are they would have done things differently. 
What we're talking about is called estate planning. It's not just for "wealthy" or "old" people 
(whatever those are). It's somethingyou need to do-regardless of your age, marital status, or 
wealth-if you want to keep control of your assets (your estate) and of decisions about your 
medical care when something happens to you. And it's important to plan now, while you can, 
because with estate planning, no one gets a second chance. 
This booklet is important to you and your family because, in effect, it gives you the second chance 
these people didn't have. We'll look at six basic ways people "plan" their estates. (You're already 
using at least one of them now, even if you think you haven't done any estate planning.) We'll 
explain what can happen when you use them. We'll show you how one plan gives you far more 
control than the others. 
And we'll explain it all in clear, conversational English-so you can understand it-because we 
want your good intentions to have a happy ending. 
D Losing Control with A WILL 
Contrary to what you've probably heard, a will may not be the best plan for you and your family. 
That's primarily because a will does not avoid probate when you die. All wills-including those 
with trusts in them-must be admitted to the probate court before they can go into effect. Also, 
a will provides no protection if you become physically or mentally incapacitated. And it probably 
doesn't give you the control you think it does if you have minor children or grandchildren. 
Let's look at each of these situations and see what happens when you have a will. 
What is probate and why do we have to go through it? 
Probate is the legal process through which the court makes sure that, when you die, your will 
is legally valid, your debts and taxes are paid, and your assets are distributed according to the 
instructions in your will. Probate is the onlY legal way to take your name off the title of an asset 
after you have died and put a new owner's name on. 
Not everything you own is automatically subject to probate. Jointly owned assets that transfer 
to the surviving owner and assets with a valid beneficiary designation (like an insurance policy) 
generally do not go through probate. But there can be some significant problems with both. 
You'll want to finish reading this booklet before you rely on them. 
Probate does not happen automatically. Someone, usually a relative or your executor, must peti- 
tion the court for probate proceedings to begin-for example, when checks need to be written, 
or when an asset needs to be sold or transferred to a new owner. 
What's bad about probate? 
It can be expensive. A survey by AARP (American Association for Retired Persons) found 
that probate is big business. In fact, AARP estimates that probate costs could top $2 billion a 
year-$1.5 billion for attorneys, and hundreds of millions more for bonding companies, apprais- 
ers and probate courts. 
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