Couple in Their 50s with $2 Million in Retirement Assets Considers Will Versus Trust for Estate Planning
A married couple in their 50s, with no children and approximately $2 million in retirement accounts, is evaluating their estate planning options, specifically whether to establish a will or a trust. The husband is 56 and the wife 52; they have been married for 26 years and own several properties and recreational assets free of debt.
The couple owns a primary residence, a vacation home, and a home in another state held in the wife’s name, where her mother currently lives rent-free except for utilities. This property includes a beneficiary deed naming the husband as the beneficiary should the wife pass first. Their other assets include a marina slip, two cars, two boats, and three recreational vehicles.
With about $2 million in 401(k)s and IRAs, the couple is considering obtaining a will soon, even exploring online options as an interim measure while planning more comprehensive estate arrangements. They seek clarity on the advantages of a will versus a trust beyond the common benefit of avoiding probate.
Legal resources such as Texas Law Help note that a will allows married couples without children to direct property to the surviving spouse, appoint an independent executor, and specify gifts or residual property. However, assets like retirement accounts, life insurance policies, jointly owned property with rights of survivorship, and trust-held assets generally pass outside a will according to beneficiary designations or ownership.
New York intestacy laws, for example, provide that a surviving spouse inherits the entire estate if there are no children, but intestacy rules vary by state. The couple’s state of residence and how their properties are titled will affect asset distribution if they die without a will.
IRS instructions for 2026 set the federal estate tax exclusion at $15 million, well above this couple’s reported retirement assets, making federal estate tax unlikely to be a concern. Nonetheless, state estate taxes and probate costs remain relevant considerations.
Living trusts offer benefits such as avoiding probate delays, maintaining privacy, and allowing continuous asset management in case of incapacity. They can also help keep certain property separate and may provide tax advantages if properly structured. However, setting up a trust can be complex and usually requires legal assistance to retitle assets correctly.
Given the complexity and variety of assets involved, consulting an estate planning attorney is advisable. A professional can help tailor a strategy aligned with the couple’s goals, state laws, and asset ownership specifics, ensuring their wishes are respected and their estate managed efficiently.