Estate Planning Isn’t Just For The Elderly

Happy, smiling couple in their sixties.

What is a pour-over will?

On Behalf of | Apr 5, 2024 | Estate Planning

A trust can be a vital component of an estate plan, considering how it can offer control and privacy when making asset distribution arrangements. As is, it can be effective enough to enforce anyone’s wishes over their estate. However, it can become more functional if combined with other estate planning tools, such as a pour-over will.

This document is like other wills, documenting the decedent’s wishes that can take effect after they pass on. This specific type of will can cover residual assets under specific circumstances, directing them into the trust established prior.

How does it work?

A pour-over will is a legal arrangement that may only apply if the decedent has a living trust. This document has provisions indicating that if the decedent dies, the assets excluded from the trust will enter it, which can trigger asset transfers. This setup can be a safety net, ensuring that the decedent’s residual assets are subject to the trust’s directions and conditions.

It may only be applicable based on the decedent’s intentions. If they deliberately kept assets out of the trust on purpose, this will might not be necessary. However, it can be helpful if the decedent keeps some of their assets out of the trust but plans to include them later or after they pass on.

Creating an effective estate plan

Trusts and wills are usual options for estate planning, but other tools can be more appropriate. When choosing options, it can be helpful to determine whether the components will align with relevant goals, preferences, circumstances and intentions.

To learn more about these factors, consider seeking legal counsel from someone experienced in estate planning. Adequate guidance can help anyone create a comprehensive estate plan that can remain legally sound over time.