What is a pour-over will? A simple guide
Planning for the future can feel overwhelming—but it doesn’t have to be. A living trust is a tool that helps you protect your assets, provide for your family, and keep your affairs private.
What Is a Pour-Over Will?
A pour-over will is a type of will that acts as a safety net, ensuring that any assets not already included in your living trust are "poured over" into it upon your death. This ensures that all your assets are distributed according to the terms of your trust, simplifying the estate administration process.
How It Works
- Establish a Living Trust: You create a living trust during your lifetime, transferring your assets into it.
- Draft a Pour-Over Will: Alongside your trust, you create a pour-over will that specifies any remaining assets should be transferred into your trust upon your death.
- Asset Transfer Upon Death: When you pass away, the pour-over will directs that any assets not already in your trust are transferred into it, ensuring they are distributed according to your trust's terms.
Benefits of a Pour-Over Will
- Simplifies Estate Management: Consolidates all assets into a single trust, making estate administration more straightforward.
- Ensures Comprehensive Asset Distribution: Acts as a catch-all for any assets not explicitly placed into the trust during your lifetime.
- Provides Greater Privacy: Assets in a trust are not subject to public probate proceedings, maintaining confidentiality.
- Enhanced Control Over Asset Distribution: Allows for detailed control over when and how beneficiaries receive their inheritance.
Considerations
- Probate Process: Assets transferred through a pour-over will must go through probate before being moved into the trust, which can be time-consuming and incur additional costs.
- Public Record Exposure: While trusts offer privacy, assets passing through a pour-over will are subject to public probate proceedings.
- Potential for Increased Costs: The probate process involves court, legal, and executor fees, which can reduce the overall assets available for distribution to beneficiaries.
How ElmTree Law Can Help
Setting up a pour-over will alongside your living trust can provide peace of mind, knowing that all your assets will be distributed according to your wishes. At ElmTree Law, we guide you through every step, making estate planning clear and manageable. We help you protect what matters most while keeping the process simple and stress-free.