Short answer: yes—you still need a will. Even though most of your wealth is in IRAs and 401(k)s (which typically pass by beneficiary designation and avoid probate), a will is still the backbone of a complete estate plan. Here’s why, and what else to put in place.
Why a will still matters when most assets have beneficiaries
– It catches everything else. Any asset without a beneficiary or joint owner—future inheritances, refunds, personal property, cars, collectibles, a stray bank account—goes through probate. A will directs who gets it, instead of your state’s default rules.
– It names your personal representative. Without a will, a court chooses who settles your affairs. With a will, you pick a capable executor and alternates.
– It plans for “what if” scenarios. If both of you die together or a beneficiary predeceases you, the will provides clear back-up instructions and avoids fights.
– It coordinates with your trust (if you create one). A simple “pour-over” will moves any unfunded assets into your revocable trust so your plan stays consistent.
– It covers pets and personal wishes. You can name a pet caregiver (and even set aside funds) and leave specific items or charitable gifts.
What happens without a will (intestacy)
– Your state’s intestacy laws decide who inherits anything without a beneficiary. In some states, if you die without descendants, your spouse may still have to share part of your separate property with your parents or siblings.
– The process may be slower and more expensive, and the court—not you—chooses the person in charge.
Retirement accounts: get the beneficiary details right
These accounts usually bypass your will, but designations must be precise:
– Primary and contingent beneficiaries. Name each other as primary and choose backups for the “both of us gone” scenario (siblings, nieces/nephews, friends, or charities).
– Per stirpes vs. per capita. Decide whether a beneficiary’s share passes to their children (per stirpes) or is split among surviving beneficiaries (per capita). Use your plan’s exact options.
– Keep forms current and consistent across all accounts. If a beneficiary form is missing or invalid, the account may go to your estate—triggering probate and often worse tax results.
– 401(k) spousal rules. Federal law typically gives a spouse automatic rights; naming a non-spouse requires notarized spousal consent.
– Think twice before naming your estate or most trusts as beneficiary of traditional IRAs. Doing so can accelerate taxes and limit options. If you need trust control (for special needs or spendthrift concerns), see an estate attorney who knows the SECURE Act rules.
Tax-smart choices for child-free couples
– Use pre-tax accounts for charity. Traditional IRAs and 401(k)s are ideal for charitable bequests because charities pay no income tax. Leave Roth or taxable assets to individuals.
– The SECURE Act’s 10-year rule. Non-spouse heirs (siblings, nieces/nephews) generally must empty inherited IRAs within 10 years, creating taxable income. This favors charitable contingent beneficiaries or leaving taxable assets (which receive a step-up in basis at death) to individuals.
– Qualified Charitable Distributions (QCDs). Starting at age 70½, you can donate up to $105,000/year (2024) directly from IRAs to charity, reducing future RMDs and your estate.
– Estate taxes. You’re well below today’s federal estate tax exemption ($13.61M per person in 2024), but state estate or inheritance taxes can kick in at much lower levels (for example, Oregon $1M; Massachusetts $2M). Ask a local attorney about your state.
Consider a revocable living trust (optional but useful)
You don’t need a trust to have a good plan, but a revocable living trust can help if you want:
– Probate avoidance and privacy (especially if you own property in multiple states).
– Smoother management during incapacity.
– Faster, more private administration for your surviving spouse.
If you create one, you must retitle assets into the trust and still sign a “pour-over” will and your powers of attorney.
Don’t skip incapacity documents
A complete plan is about more than death:
– Durable financial power of attorney. Lets your chosen agent manage finances if you can’t.
– Health care proxy and living will. Names who makes medical decisions and states your end-of-life wishes.
– HIPAA release. Ensures doctors can speak with your chosen people.
Make transfers outside probate where sensible
– Real estate. Consider joint ownership with right of survivorship or a transfer-on-death deed where available.
– Bank and brokerage. Add transfer-on-death (TOD) or payable-on-death (POD) designations.
– Titles and digital assets. Update vehicle titles where allowed; leave secure access to passwords and a list of key accounts. A “letter of instruction” can guide your executor.
Executor and backup choices
– Pick organized, trustworthy people, and name backups.
– Tell them where documents are and whom to contact (attorney, CPA, financial advisor).
– If using a trust, name a successor trustee and consider a professional or corporate trustee if family dynamics are complex.
Special notes for married couples in their 50s
– Community property vs. common law. Community property states can offer a full step-up in basis at the first death, which is favorable for taxable (non-retirement) assets. Ask your attorney about titling options in your state.
– Portability. Filing a federal estate tax return to “port” any unused exemption to the survivor can be prudent if your estate might grow, even if no tax is due. Discuss with a CPA or attorney.
– Pets. Consider naming a caregiver and setting aside funds or creating a pet trust.
Costs and how to start
– Typical ranges: a simple will-based plan with powers of attorney and health directives might run $500–$2,000 per couple depending on your state and complexity; a trust-based plan often runs $2,000–$5,000+. Online solutions can work for basics, but a local estate-planning attorney is best for coordinating retirement accounts, state taxes, and real estate.
– Bring to your meeting: a list of accounts and current beneficiaries, property deeds, how you want to divide assets if you both pass, names of executors/agents and backups, and any charitable goals.
A practical checklist
– Review and update all beneficiary designations (primary and contingent).
– Sign wills for both of you, naming executors and alternates.
– Execute durable financial POAs, health care proxies, living wills, and HIPAA releases.
– Decide whether a revocable living trust fits your goals.
– Add TOD/POD designations and consider TOD deeds where available.
– Coordinate charitable gifts with tax efficiency (traditional IRAs to charity).
– Document digital access and write a letter of instruction.
– Revisit every 3–5 years or after major life or legal changes.
Bottom line
Even with $2 million largely in retirement accounts and no children, you still need a will—and a few other core documents—to control who inherits, minimize hassles, and protect each other if one of you becomes incapacitated. A short meeting with a local estate-planning attorney will tailor these steps to your state and make sure your beneficiary-driven plan actually works the way you intend. This is general information, not legal or tax advice.
