The children inherited all of the life insurance proceeds at age 18, by operation of law, which took preference over the will that established the trust. When their attorney drafted their wills, he included very sophisticated provisions to avoid tax on part of the estate. But Mr. and Mrs. Brown continued to hold their property jointly. At Mr. Brown's death, all of the property was transferred to his wife, by operation of law, and nothing was available to fund the tax avoidance trust. The fourth priority of transfer is intestate distribution, the distribution that occurs if you die without a will.
State laws vary and are constantly changing.
Intestate distribution will probably be the most expensive, as it will not include any tax planning. And equally important, there are no provisions in the laws of any state to care for your charitable interests. Therefore, to rely upon state law to express your desires and what you understand to be God's plan of stewardship for your estate, probably would not be wise. We trust you understand the importance of clearly conveying to those who are helping you plan your estate, details of how your property is held. The estate planning process involves the transfer of property.