A pour-over will is a vital estate planning tool that ensures any assets not initially included in a trust get transferred to it upon death. This combination allows for a smoother transition and helps protect assets.
What is a pour-over will?
A pour-over will is a legal document that works alongside a trust. Its primary function is to transfer any assets not already placed in a trust during the grantor’s lifetime into the trust after death.
How it works with a trust
The trust holds most of the assets during the person’s life. However, some assets may be left out. A pour-over will directs these assets into the trust at the time of death. This process simplifies asset distribution, allowing the trust to control all assets based on its terms.
Benefits of using both a will and a trust
By using a pour-over will in conjunction with a trust, individuals gain more comprehensive control over their assets. The trust manages assets throughout life and after death, while the pour-over will catches anything missed. This combination reduces the likelihood of assets going through probate and protects beneficiaries.
Why it’s essential for a complete estate plan
Relying solely on a trust may exclude assets acquired later in life. A pour-over will serves as a safety net, capturing valuable assets and transferring them into the trust. These tools work together to build a more secure and flexible estate plan for future generations.
Using a pour-over will with a trust provides peace of mind, knowing the trust will manage all assets as intended. Even if the grantor does not transfer certain assets during their lifetime, the pour-over will directs those assets into the trust after death.