Wills can include various conditions to serve different functions. It can have specific or general directions on what happens to the testator’s estate after they pass on. Sometimes, this document can work in tandem with other estate planning tools. For example, a living trust can exist with a will indicating that the testator’s assets will go into the trust after death. This document is a pour-over will.
Pour-over wills have a niche purpose because it redirects assets into a trust instead of distributing them to beneficiaries. Its use is only valid if the testator has a trust. Some people may consider it because of the following benefits:
- It covers assets kept out of the trust during the testator’s life
- When probating the testator’s estate, it can relieve surviving family members of potential issues and disputes.
- It can give the testator more control over what happens to their estate even after their death.
However, these advantages can vary based on state laws. The testator’s estate may still be subject to legal deductions and tax requirements before they enter the trust. Additionally, having a pour-over will means that beneficiaries can face delays before receiving their inheritances.
Knowing if a pour-over will is right for you
When creating an estate plan, a will can be an essential element with cost-effective features. But it can only be as beneficial according to your objectives, whether you have preferences and decisions concerning your estate even long after your death. If so, it can be helpful to seek legal counsel. Doing so can help you determine if a pour-over will fits your goals or if other options are more appropriate.