A pour-over will is a legal document that helps transfer assets to a trust after death. It works in conjunction with a living trust, ensuring that any property not already included in the trust is moved there upon your death. The main goal is to simplify the estate planning process and avoid probate for assets that are not in the trust.
What does a pour-over will do?
The pour-over will acts like a safety net. If you forget to place an asset into your trust during your lifetime, the will ensures it gets added to the trust after you pass away. This prevents those assets from going through the lengthy and often costly probate process. It’s important to note that a pour-over will does not help avoid probate for all assets; it only covers the assets that weren’t already transferred to the trust.
How does it work?
When you pass away, the pour-over will direct the executor to transfer all remaining assets into your living trust. The executor gathers these assets, pays any debts, and distributes them according to the trust’s terms. If your will includes specific instructions for handling certain assets, the executor follows those instructions before placing the assets in the trust.
Benefits of a pour-over will
One of the main benefits of a pour-over will is the peace of mind it offers. It ensures that all your assets, regardless of whether they were initially placed into your trust, will ultimately be managed according to your wishes. Additionally, it can help streamline the probate process, making it easier for your loved ones to handle your estate.
A pour-over will also allows for greater privacy since it minimizes the public exposure of your estate’s assets. Without it, assets left outside of your trust might be subject to probate proceedings that are open to public scrutiny.
Having a pour-over will in place can simplify your estate planning, reduce complications for your loved ones, and ensure that your assets are transferred according to your wishes.