Seed or Harvest
L.E.O.
Law Enforcement Officer
Independent Financial Education Podcast.
Episode 08
JANUARY 7, 2025
Officer Ty
LEO PODCAST
Wills vs Trusts for Law Enforcement: Avoid Probate, Protect Your Family, and Plan for Incapacity
Quick Answer (60 seconds)
A will only takes effect after you die and usually requires probate (court). A trust can take effect while you are alive if you become incapacitated and is administered outside of court, which is typically faster and easier for your family. Trusts cost more upfront because they require more documents and proper funding (titling assets into the trust), but they can save time, stress, and legal fees later. If you do nothing and die without a will or trust, Arizona’s intestate process can create delays, conflict, and higher costs, especially if family members disagree on who should be in charge.
Expert / Reviewer
Reviewed by: MAPFL Editorial Team (Maximize Asset Protection)
Guest: Guest: Cindy Starkey — Arizona estate planning attorney with 35+ years of experience
Note: Educational content, not legal advice
Table of Contents
- Why Law Enforcement Officers Need Estate Planning Earlier
- Wills vs Trusts: The Core Differences
- Probate vs No Probate: Why Court Matters
- Cost Comparison: Cheaper Now vs Cheaper Later
- Funding the Trust: The Step People Miss
- The Pour-Over Will and the $75,000 Problem
- Retirement Accounts, Deferred Comp, and Pensions: What Typically Does Not Go Into a Trust
- Real Estate Investing: LLCs, Liability, and How a Trust Can Fit
- What Happens If You Die Without a Will or Trust in Arizona
- Wills for Heroes: A Basic Starting Point for First Responders
- FAQs
- Key Takeaways
- Next Steps / CTA
Why Law Enforcement Officers Need Estate Planning Earlier
Cindy Starkey explains that everyone needs a will or a trust, but officers and first responders often need it sooner because the job carries higher risk of death or incapacity. Estate planning is not only about distributing assets after death. It also covers who can act for you if you cannot act for yourself.
They also discuss the reality that many people delay estate planning until they feel “older,” even though unexpected events can happen at any age.
Wills vs Trusts: The Core Differences
Cindy breaks down the practical differences:
- A will generally takes effect only after death.
- A trust can operate while you are alive, including if you become incapacitated.
She also explains that a trust is typically managed by a trustee, and most people name themselves (and a spouse) as trustee until something happens, then a successor trustee steps in.
Probate vs No Probate: Why Court Matters
A major theme of the episode is court involvement. Cindy explains:
- Wills usually go through probate, which means court filings, approval steps, fees, and timelines.
- Trusts are administered outside of court, so the transition can be simpler and more private.
Cindy also notes that probate can become significantly more expensive if there is disagreement among beneficiaries.
Cost Comparison: Cheaper Now vs Cheaper Later
Cindy explains why wills are often cheaper at the beginning and why trusts typically cost more upfront. She describes her typical will package and how a trust package includes more documents plus the extra work of funding the trust.
She also explains the “hidden” cost of a will later: probate expenses and attorney involvement after death. In her description, a will does not necessarily save money in the long run.
Funding the Trust: The Step People Miss
Cindy emphasizes that a trust only works if you fund it, meaning you retitle assets into the trust. If you create a trust but leave assets outside of it, your family may still have to use court processes to transfer what was left out.
Mario shares a real example: a family life insurance ownership situation that became a hassle after a death, even though there was a trust, because the asset was not properly handled ahead of time.
The Pour-Over Will and the $75,000 Problem
Cindy explains that trusts typically include a special will called a pour-over will. Its purpose is to “catch” assets that were accidentally left outside the trust and move them into the trust at death.
But she also explains a key limitation discussed in the episode: if what was left out is above a certain threshold (she references $75,000 cumulative value), the family may still have to go to court. That defeats the purpose of having a trust in the first place.
Retirement Accounts, Deferred Comp, and Pensions: What Typically Does Not Go Into a Trust
Cindy explains that certain retirement assets, such as federally qualified retirement benefits (examples discussed include 401(k)s and IRAs), may have distribution rules and tax consequences that can make titling them into a trust a poor fit. She describes how forced distribution timing could create major tax issues if large balances must be taken in a short period.
They also discuss pensions generally expiring when you expire unless a continuing benefit is elected for a spouse, and how that changes what is even available to “transfer.”
Real Estate Investing: LLCs, Liability, and How a Trust Can Fit
Officer Ty asks how trusts work with future real estate investing. Cindy explains an approach aimed at limiting liability: using a separate LLC for each property so a catastrophic event at one property does not expose everything else.
She then describes how the LLC ownership can be placed into the trust so that, at death, administration is clearer for the trustee and easier for the family to locate and manage.
What Happens If You Die Without a Will or Trust in Arizona
Cindy explains that if you die without a will, the probate becomes an intestate probate, which she describes as more complicated. Arizona statutes determine who has priority to serve as personal representative (she lists spouse first, then children, then parents, then broader family).
She gives an example of a current case where two children disagree on who should be personal representative. Cindy explains that if they cannot agree, a judge may decide, and legal fees can eat into the estate.
Wills for Heroes: A Basic Starting Point for First Responders
They mention the Wills for Heroes program as a way for first responders to get a basic estate plan prepared, typically pro bono. Cindy explains that it may be a more general, basic plan, but it is still better than having nothing.
If you want to turn “I should do this” into an actual plan, MAPFL can help you coordinate the right conversations and next steps:
FAQs
Cindy says yes. Estate planning is also about who can act for you and who would care for minor children, not just distributing wealth.
Cindy explains a will generally takes effect only after death, while a trust can operate if you become incapacitated and can manage assets outside of court.
No. Cindy says wills typically require probate, meaning court oversight, filings, fees, and timelines.
Cindy explains trusts are administered outside of court, which can reduce delay and complexity when compared to probate.
Cindy explains the will may cost less to create, but probate after death can create attorney fees, court fees, publication requirements, and longer timelines.
Cindy explains funding is placing assets into the trust by titling or retitling them into the trust’s name. A trust that is not funded may not accomplish the purpose.
Cindy says it is a will used with a trust to capture assets that were left outside the trust and move them into the trust at death, but it may not prevent court involvement if the value left out is too high.
Cindy explains the estate may go through an intestate probate, and Arizona statutes set who can serve as personal representative. Disagreements among heirs can lead to court decisions and higher legal costs.
Cindy cautions that qualified retirement assets can have strict distribution rules and tax consequences if placed into a trust. She recommends coordinating with tax professionals for the right structure.
Cindy describes using separate LLCs per property to limit liability, then placing the LLC ownership into the trust so administration is clearer and assets are easier to manage after death.
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Key Takeaways
- Officers should plan earlier because incapacity risk matters, not just death.
- A will typically means probate (court). A trust is typically administered outside of court.
- Trusts cost more upfront but can reduce stress, delay, and legal fees later.
- A trust must be funded (assets titled into it) or it may fail to do what you intended.
- Dying without a will can create conflicts and court decisions that drain the estate.
- Real estate investors often use separate LLCs per property and can place LLC ownership into a trust.
Next Steps / CTA
If you are in law enforcement and have been putting off wills and trusts because the topic feels uncomfortable, this is your sign to get it handled. MAPFL can help you map out what questions to ask, what documents to prioritize, and how to coordinate estate planning with retirement and family protection.
- Book a Free Consultation: https://mapfl.com/schedule-your-appointment/
- Call/Text: +1-602-526-3236: https://mapfl.com/contact-us/
MAPFL resources:
- https://mapfl.com/podcast/planning-for-healthcare-costs-during-retirement/
- https://mapfl.com/carriers/
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