Range members recently attended an exclusive estate planning webinar hosted by Range and Trust & Will. Below are the questions members asked during the session, answered by the Range planning team.

The information contained in this communication is for informational purposes only. This content may not be relied on in any manner as specific legal, tax, regulatory, or investment advice. While we strive to present accurate and timely content, tax laws and regulations are subject to change, and individual circumstances can vary.

Estate Planning Basics

Wills and trusts have some non-overlapping benefits. Do survivors still have to go through probate?

A will alone typically requires probate, but a revocable living trust can help you avoid it—though only for assets titled in the trust's name. Assets not transferred to the trust may still go through probate. Guardianship designations must also go through probate, but the fewer assets subject to probate, the simpler and less expensive the process.

Should a will direct everything to a trust to avoid probate?

Yes — that’s called a pour-over will. When you create a trust, you also have a pour-over will that directs any assets not already titled in the trust to be transferred into it after death. However, those assets still go through probate before ending up in the trust.

It’s also important to note that some assets bypass probate automatically:

• Accounts with named beneficiaries — such as retirement accounts, life insurance policies, and payable-on-death (POD) or transfer-on-death (TOD) accounts — pass directly to the listed beneficiaries.
• Jointly owned assets (like a home or bank account held jointly) transfer directly to the surviving joint owner, assuming they are still living.

By ensuring your accounts and property are either titled in your trust or have proper beneficiary or joint ownership designations, you can greatly reduce — or even eliminate — what needs to pass through probate.

Does guardianship of children require probate?

Yes, courts must approve guardianship of minor children, so this always goes through probate (or a similar court process), even if your will names your preferred guardian. Courts generally follow your wishes unless there's a compelling reason not to.

Assets & Trust Funding

If a 401(k) has beneficiaries named, does it have to go through probate if it's not in a trust?

A: No. If a 401(k) or other retirement account has a named beneficiary, those assets bypass probate and go directly to the beneficiary. You can also name your trust as the beneficiary if that's part of your estate plan.

If you create a trust and your situation changes (like buying a second house), what's the process for updating trust assets?

It's straightforward—you don't need to amend the trust document. When you buy new property, simply title it in your trust's name during the purchase process. For real estate, that means recording a deed in the trust's name. For financial accounts, you can work with the bank or custodian to retitle the account or add the trust as the owner or beneficiary. 

If your circumstances change more substantially, for example, a death, marriage, divorce, or move to another state, it’s a good idea to review the trust with your attorney. In those cases, you will likely need new or amended documents to update beneficiaries, trustees, or specific provisions to ensure the trust still reflects your wishes and complies with state law.

Can you transfer assets to a trust without tax consequences?

In most cases, yes. Transferring assets into your revocable living trust does not trigger income, gift, or property taxes, because the IRS still considers it your property; you maintain full control and ownership.

However, you may incur minor recording or filing fees, particularly when transferring real estate, and some localities could reassess property values in rare cases. It’s always a good idea to check with your local recorder’s office or tax advisor before finalizing the transfer. Additionally, if you’re transferring real estate that has an existing mortgage, it’s important to understand the “due-on-sale” clause included in most loan agreements. We recommend contacting your lender before making any transfer to confirm their requirements.

What are the pros and cons of putting financial assets with assigned beneficiaries into a trust?

Pros: Assets in a trust avoid probate (faster access, lower costs, privacy) and provide seamless management if you become incapacitated, plus you can control how and when beneficiaries receive distributions.

Cons: Retirement accounts (IRAs, 401(k)s) should not be titled in a trust. Instead, it’s usually best to name your spouse as the primary beneficiary and the trust as the contingent beneficiary,

For taxable investment accounts, trusts work well; for retirement accounts, use direct beneficiary designations coordinated with your trust strategy.

What should go into a trust?

Assets that should go in a trust:

• Taxable investment accounts (brokerage, savings)
• Bank accounts
• Real estate (primary residence, rental properties)
• Business interests
• Personal property of significant value

Assets that should NOT go in a trust:

• Retirement accounts (IRA, 401(k), Roth IRA)—use beneficiary designations instead
• Life insurance policies—name beneficiaries directly
• HSAs—use beneficiary designations

Rule of thumb: If it has a beneficiary designation form, use that. Everything else gets titled in the trust.

What's the minimum estate value to justify a trust?

There's no legal minimum. At Range, we typically recommend trusts when members have assets totaling $750K+, real estate, and/or minor children—though some people with less use them for privacy or simplicity.

Guardianship & Trustees

Is it better to have the guardian and trustee be the same person?

It can make sense for continuity and simplicity, but it's not required. You can separate these roles—one person might be better suited to raise your children (guardian) while another might be better at managing finances (trustee). Consider each person's strengths and what's best for your children.

What if the probate court designates a different guardian than who the trust designated to manage finances?

The probate court has final authority on guardianship of the children themselves, but your trust controls the financial assets. While courts generally honor parental wishes documented in estate plans, they can override them if they believe it's in the child's best interest. This is why clear documentation matters and, if possible, discussing your wishes with potential guardians ahead of time can help. Even if different people end up as guardian and trustee, the trustee can distribute funds to support the guardian in caring for the children.

Real Estate & Property

Should international properties be placed in a US trust?

International properties add an extra layer of complexity to estate planning. Each country has its own rules governing property ownership, taxation, and inheritance, and many do not recognize U.S. trusts. In most cases, you may need to establish separate estate planning documents — such as a local will or trust — in the country where the property is located to ensure it transfers according to your wishes.

Before taking any action, consult with both a U.S. estate planning attorney and a cross-border tax specialist who can coordinate on the income, gift, and estate tax implications in both jurisdictions. This helps avoid double taxation, reporting issues, or unintended legal conflicts between countries.

State Residency & Relocation

Is it valid to have a trust in a state where you're not always a full-time resident, but where you own real estate and beneficiaries live?

Trusts are typically established based on your state of primary residence, not where your assets are located. However, a trust created in one state can hold property in other states. The trust will be interpreted according to the laws of the state where it was created, but it can control assets nationwide. If you split time between states, consult with an estate planning attorney about which state to use as your primary residence for trust purposes.

Do you have to recreate a trust if you move states?

Best practice is to restate your revocable trust under your new state’s law and update your related estate documents so everything aligns locally. While most revocable trusts may remain valid across state lines, restating (or re-executing) the trust in your new state can make administration smoother and help avoid conflicts with state-specific rules.

What if spouses have a trust but live in different states as primary residences?

This creates complexity, and it may be wise to consult with estate planning attorneys in both states. Typically, married couples living together create one joint revocable trust. If you maintain separate residences in different states, you may need careful planning to address both states' laws and tax implications.

If I'm not married but in a long-term partnership, should we set up one trust or two separate trusts?

For unmarried partners, separate trusts are typically recommended, with each partner controlling their own assets. You can name each other as beneficiaries in your respective trusts if desired. This provides clarity and avoids potential complications since unmarried partners don't have the same automatic legal rights as spouses. However, you can name each other as successor trustees to manage each other's trust if one becomes incapacitated.

Tax & Inheritance

How are beneficiaries taxed when they inherit trust assets?

Currently, at the federal level, individuals can inherit up to approximately $13.99 million ($27.98 million for married couples) without federal estate tax. Only estates exceeding this threshold pay up to 40% tax on the excess amount.

Most beneficiaries receive their inheritance tax-free. The key taxes to consider are:

1. Federal Estate Tax: Only applies to very large estates (over $13.99M individual/$27.98M couple)
2. State Estate Taxes: Many states have much lower thresholds, so check your state's rules
3. State Inheritance Taxes: A few states levy an inheritance tax on the beneficiary, not the estate. The rate and exemption depend on the relationship to the deceased (spouses and children often pay none or less, while distant relatives or non-family may pay more).
4. Final Income Tax: The deceased person's final income tax return must be filed, covering income earned up until death

The trustee or executor typically handles paying any estate or income taxes before distributing assets, so beneficiaries typically receive their inheritance without additional tax liability. In some cases, a CPA might pass through certain tax obligations to beneficiaries if it results in a lower overall tax rate.

Range Membership & Pricing

Q: What's included for free with Range membership versus an additional fee through Trust & Will?

A: Range memberships include one set of estate planning documents for free. Additional documents and legal help through Trust & Will come at an additional cost.

Q: Can Range members ask all these questions to the Range financial team?

A: Yes! You can ask the Range planning team, or you can ask Rai, our AI wealth advisor.

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