Estate planning empowers you to determine the future of your assets. A pour-over will is a legal instrument often used in conjunction with a trust to streamline asset distribution and maintain privacy.
How a pour-over will functions
A pour-over will serves as a safeguard. If you inadvertently exclude an asset from your trust, this will directs that asset into the trust upon your death. As a result, your trust retains authority over its distribution.
For example, imagine establishing a revocable living trust but neglecting to transfer a particular bank account into it. A pour-over will ensures that the account transfers into the trust, where its terms then govern distribution.
Advantages of using a pour-over will
Many choose a pour-over will for the sake of consistency and clarity. Rather than distributing your estate through separate legal mechanisms, you allow your trust to oversee the process. This often minimizes ambiguity and can reduce familial disputes.
Another benefit lies in discretion. Probate proceedings, which apply to wills, are public. Trusts, by contrast, are private. Although a pour-over will must still pass through probate, it applies only to assets not already in the trust. Once transferred, the trust provisions—which remain confidential—take effect.
Limitations of a pour-over will
A pour-over will does not eliminate the probate process. Substantial assets left out of a trust will still undergo court proceedings. Additionally, it does not negate the need to actively fund your trust during your lifetime.
This document also does not constitute a comprehensive estate plan. You should still consider instruments like durable powers of attorney and advance healthcare directives to ensure your preferences are honored.
If you have a trust or intend to establish one, a pour-over will adds an important layer of protection. It ensures that inadvertently omitted assets are still governed by your trust. Update both your will and trust documents regularly to reflect changes in your financial situation.