A pour-over will is a last will and testament that is designed to cover any assets that are not part of a living trust. A living trust needs to be funded, which means your assets will be transferred into the trust’s name. A funded living trust is a great option, but it may not include all of the assets you have.
What is a Pour Over Will?
A pour-over will is part of the estate planning process to “catch” additional assets that may not be part of an original estate or trust. Pour-over wills focuses on person, non-trust assets. Depending upon state law, the estate could be subject to probate if it is not drafted correctly. Always have a reliable estate and trust planning attorney draft and review documents to ensure your will and trust have been drafted correctly.
Drafting a Pour Over Will
The pour-over will needs to be consistent with the trust and can name the trust as a beneficiary. Naming the trust as the beneficiary will eliminate negative tax implications. Meet with an attorney to determine what is considered a personal asset and what is a trust asset. For more information on estate and trust planning, contact our office today!