We've been discussing for awhile now the need to set up a trust. We need to figure it out soon. I have no idea how stuff would go if one of us died and with each of us having kids, etc. Would the spouse just get everything? Then when the surviving spouse passes, the kids of that spouse get it all and the first one's kids get nothing? Neither of us want that. So, yeah. Need to get that taken care of.
I think we both have like, 5x our salary. I'd have to get medical exams & such to get more than that and I doubt they'd insure me with all the stuff I have going on.
Go see a wills & trust lawyer. For $1500, you can get a pretty good set of death docs including a will, trust, and durable power of attorney.
If you die intestate (without a will) with a spouse and heirs who are not the legal children of your spouse, then 1/2 of your estate goes to your spouse, and 1/2 of your estate is equally divided among all of your heirs. ARS 14-2102.
If you have a valid will, then your estate is distributed to the will.
In either case, the process must go through probate.