A more thorough explanation:

Definition: A will substitute is a legal document that allows a person to distribute their estate after death without the need for a probate proceeding. This means that the estate can be distributed in the same or similar way as a will, but without the formalities and expenses of probate.

The most common types of will substitutes include:

• Trusts: A trust is a legal arrangement where a person (the trustor) transfers their assets to a trustee, who manages the assets for the benefit of the trust's beneficiaries. Trusts can be revocable or irrevocable, and can be used to distribute assets after the trustor's death.
• Life insurance plans: Life insurance policies can name beneficiaries who will receive the proceeds of the policy upon the policyholder's death.
• Retirement benefits contracts: Retirement accounts, such as 401(k)s and IRAs, can name beneficiaries who will receive the funds in the account upon the account holder's death.

The creation of will substitutes has been an important development in estate planning because it allows individuals to distribute their assets without the need for a probate proceeding. This can save time and money for the beneficiaries of the estate.

For example, if a person creates a trust and transfers their assets to the trust, the assets will be managed by the trustee and distributed to the trust's beneficiaries according to the trust's terms. This can be done without the need for a probate proceeding, which can be time-consuming and expensive.