What Happens to Your Assets When You Die?
The question is simple: If you were to pass away tomorrow, would your assets remain functionally available to your family, or would they seize up? Most people assume their assets will simply “go where they’re supposed to go.” In reality, what happens to your accounts after your passing depends less on your intentions and more on how those assets are titled, structured, and documented today. Today’s note examines the mechanics of what happens to your assets the moment you are no longer here to manage them. Probate: The Great Administrative Freeze Most people operate under the "Will Fallacy"—the belief that a Last Will and Testament is a universal key that unlocks all doors. In reality, a Will is a set of instructions to a judge and only becomes effective through probate. Probate is the court-supervised process of authenticating your Will, assigning an executor to your estate, and distributing your assets. Probate can be slow (often lasting 9 to 18 months), it can be expensive,...