Even if multi-tasking is your superpower, it is still difficult to manage everything in your life. This is true when it comes to assessing your property and assets and allocating them to heirs and beneficiaries.
Even when you have a solid will in place, this does not mean everything will be covered and protected by this document. As such, it is important to consider additional or other options you have during the estate planning process.
Pour-over will
Because many people seek to have their assets avoid probate as much as possible, many create trusts. While this is an effective way to avoid probate and ensure specified heirs get the contents of the trust, this does not mean everything will be properly transferred to the trust.
If a testator dies before they can place all their assets and property in the trust, this could give cause for probate for those remaining assets. In order to avoid this, a pour-over will is used. This document essentially transfers all the remaining assets not currently in the trust, distributing them in accordance with the trust.
How they work
When creating a pour-over will, the testator must be of sound mind and the document must be in writing, signed by the testator. Two people must witness the signing of the will.
Additionally, there are two other requirements in order for a pour-over will to work.
First, the trust that the assets will be poured over should mention the will in the documents that created the trust. Second, the trust must have been created before the pour-over will or contemporaneously with the pour-over will.
Estate plans are unique to each individual. Thus, it is important to consider this while creating and updating a will and an entire estate plan. This can be a confusing and sometimes complex process, making it beneficial to seek legal guidance during this time.
