Why Some Doctors Still Go Through Probate Despite Having an Estate Plan
Most Minnesota doctors do not intend for their estate to go through probate. They have taken proactive steps by creating a will, establishing a trust, or working with an estate planning attorney. From their perspective, everything appears to be in order.
However, at Yanowitz Law Firm, we regularly review estate plans for doctors and guide families through probate, and we often see the same issue. Probate occurs not because of one major mistake, but because small gaps developed over time. As careers progress and financial lives become more complex, estate plans are not always updated to reflect those changes.
Avoiding probate is not simply about having the right documents. It requires ongoing coordination between your trust, asset ownership, and beneficiary designations.
A Trust Does Not Automatically Avoid Probate
Many doctors believe that creating a revocable living trust automatically keeps their estate out of probate. While a trust can be an effective probate avoidance tool, it only controls assets that are properly connected to it.
One of the most common issues we see is incomplete trust funding. A doctor may have a carefully drafted trust, but brokerage accounts, investment properties, or other assets remain titled in their individual name.
When those assets have not been transferred into the trust, they may still require probate after death. The trust itself is not the problem. Rather, the issue is that the trust was never fully implemented.
This oversight often goes unnoticed because nothing appears wrong during life. The complications usually arise only when family members begin administering the estate.
How Growing Assets Create Estate Planning Gaps
Doctors often experience significant financial growth throughout their careers. Investment accounts expand, additional real estate is purchased, retirement savings increase, and new financial accounts are opened.
Unfortunately, estate plans frequently remain unchanged while financial circumstances evolve.
For example, a Minnesota doctor may establish a trust early in their career. Years later, they acquire several brokerage accounts and purchase vacation property, but those assets are never titled into the trust.
As a result, part of the estate passes according to the trust while other assets require probate. From the family’s perspective, the process feels unnecessarily complicated because some assets transfer smoothly while others do not.
This is one reason estate planning should be viewed as an ongoing process rather than a one-time event.
Why Coordination Is Essential
Effective estate planning depends on coordination.
Some assets transfer according to how they are titled. Others pass through beneficiary designations, including retirement accounts and life insurance policies. Still others may be governed by the trust.
If these pieces are not working together, the result can be an estate that is divided between probate and non-probate transfers. That may increase administrative work, create confusion for family members, and prevent the estate plan from functioning as intended.
Doctors often have increasingly complex financial lives, making regular reviews even more important. Every few years, or after a significant financial or personal change, it is worth reviewing asset ownership, trust funding, and beneficiary designations to confirm they still align with your overall estate planning strategy.
The objective is not simply to have an estate plan. It is to have one that continues to work as your life evolves.
Need Assistance?
SCHEDULE A FREE 15 MINUTE CONSULTATIONFrequently Asked Questions
Can I still go through probate if I have a trust?
Yes. A trust only controls assets that have been properly transferred into it. Assets that remain titled in your individual name may still require probate.
What does it mean to fund a trust?
Funding a trust means transferring ownership of appropriate assets into the trust so they can be managed and distributed according to the trust’s terms.
How often should doctors review their estate plan?
Many estate planning attorneys recommend reviewing your plan every few years or after major life or financial changes, such as retirement, purchasing real estate, opening new investment accounts, or significant changes in net worth.
Author
Claire creates wills and trusts which provide security and peace of mind. She compassionately listens to her clients’ dreams, goals, and fears and then fashions plans that best meet their needs.
It is important to Claire that her clients understand different options and make decisions that are right for them. She loves to educate clients by drawing out complicated concepts.
Come visit us! Conveniently located in Rochester, Minnesota.
Sign Up to Our Newsletter
TO RECEIVE UPDATES ON THE LAW
Community Education: Events
Further Reading: NAEPC Journal of Estate & Tax Planning
