A Pour-Over Will is a special type of will that works hand-in-hand with a revocable living trust. Its main purpose is to “catch” any assets that you didn’t transfer into your trust during your lifetime and automatically direct them into the trust upon your death.
Think of it like a safety net. Ideally, all your assets are placed into your living trust while you’re alive. But in reality, people sometimes forget or are unable to transfer everything. The Pour-Over Will ensures those remaining assets are still governed by the terms of your trust.
How It Works
Here’s a simple breakdown of how a Pour-Over Will functions in an estate plan:
- You Create a Revocable Living Trust. This trust holds and manages your assets during your lifetime and allows for smooth distribution after death, typically avoiding probate.
- You Draft a Pour-Over Will. The will names your trust as the beneficiary of any assets that are not already in the trust.
- At Death, Assets “Pour Over” Into the Trust. Anything left outside the trust at the time of your death is funneled into the trust via the Pour-Over Will.
- Trust Terms Control Distribution. The assets are then distributed according to the instructions you have outlined in the trust.
Why Is a Pour-Over Will Important?
Even with careful planning, it’s common for people to acquire new assets and forget to put them into their trust. A Pour-Over Will ensures that no asset is left out of your plan.
Limitations to Know
It’s important to note that any assets passed through the Pour-Over Will must still go through probate, unless they qualify for a small estate exemption or have a designated beneficiary (like life insurance or retirement accounts). This is why it is best to fund your trust during your lifetime whenever possible.
Who Needs a Pour-Over Will?
Anyone who uses a revocable living trust as part of their estate plan should also have a Pour-Over Will. It is an essential backup tool to ensure your estate is fully covered. If you are unsure whether your estate plan includes this important document—or if you have not yet created a trust—contact us today to consult with an estate planning attorney.