What Is a Pour-Over Will and How Does It Work?
A pour-over will is a type of will with a provision to “pour” any leftover or unallocated assets in a person’s estate into a living trust when the person dies. The idea is to minimize the probate process and ensure that assets are distributed as the deceased wishes.
If your estate plan includes a living trust, you may want to consider pairing that trust with a pour-over will. A pour-over will helps ensure that your residuary estate and any assets you neglected to include in your living trust will be transferred to that trust automatically after your passing (literally poured over into the trust), so your estate can be distributed the way you want.
Unlike a traditional last will and testament, a pour-over will is not a stand-alone document, and that’s because it needs something to pour into. Pour-over wills are designed to work in conjunction with living trusts, also known as inter vivos trusts, as an added safety measure.
A living trust allows you to retain complete ownership of the assets contained in it for as long as you’re alive. Then, when you pass, any assets that you’ve transferred into your trust are distributed according to your wishes — without having to go through probate.
A pour-over will brings important added protection to your existing living trust by letting the court know that any assets you forgot to (or were unable to) include in your trust should be immediately transferred to that trust upon your death so that they can be distributed to your chosen heirs. Without a pour-over will (unless you also have a traditional will and testament detailing assets not included in your trust), any assets you neglected to include in your trust would be treated as if you died without a will, also known as dying intestate. The court may distribute the assets according to state law, which could yield very different results from what you intended.
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