How does a Pourover will work?
When people make revocable living trusts to avoid probate, it’s common for them to also make what’s called a “pour-over will.” The will directs that if any property passes through the will at the person’s death, it should be transferred to (poured into) the trust, and then distributed to the beneficiaries of the trust.
Why do you need a pour-over will?
If your deceased relative leaves assets to you and you subsequently die without funding the inherited assets into your trust, the pour-over will catches the assets from the estate of your deceased relative and directs your personal representative to transfer them from your estate into your trust.
Does a trust void a will?
Regardless of whether the trust is revocable or irrevocable, any assets transferred into the trust are no longer owned by the grantor. In such cases, the terms of your trust will supersede the terms of your will, because your will can only affect the assets you owned at the time of your death.
What supersedes a will or a trust?
A will and a trust are separate legal documents that typically share a common goal of facilitating a unified estate plan. Since revocable trusts become operative before the will takes effect at death, the trust takes precedence over the will, when there are discrepancies between the two.
What does a ” pour over ” clause mean in a will?
A pour over will, or pour over clause in a will, specifies that all property and financial assets owned by the individual transfer to the trust, and the control of the Trustee.
How does a pour over will work with a living trust?
This kind of will is often used with a living trust. Under the terms of a pour-over will, all property that passes through the will at your death is transferred to (poured into) your trust. Then it’s distributed to the trust beneficiaries you named while you were alive.
Are there any disadvantages to a pour over will?
Disadvantages of Pour-Over Wills. The main downside to pour-over wills is that (like all wills), the property that passes through them must go through probate. That means that any property headed toward a living trust may get hung up in probate before it can be distributed by the trust.
Can a revocable will be used with a pour over will?
Revocable and irrevocable trusts. Estate plans typically pair pour-over wills with living trusts, which require that grantors transfer assets to them prior to their death. Most smaller estates use revocable living trusts, which allow grantors to control the assets in the trust until they pass away.
What does the ” pour over ” clause in a will mean?
The pour-over clause protects property not previously placed in a trust by pouring it into the previously established trust through the vehicle of the will. Look up pour-over will in Wiktionary, the free dictionary.
Disadvantages of Pour-Over Wills. The main downside to pour-over wills is that (like all wills), the property that passes through them must go through probate. That means that any property headed toward a living trust may get hung up in probate before it can be distributed by the trust.
Revocable and irrevocable trusts. Estate plans typically pair pour-over wills with living trusts, which require that grantors transfer assets to them prior to their death. Most smaller estates use revocable living trusts, which allow grantors to control the assets in the trust until they pass away.
What are assets covered by a pour over will?
A pour-over will covers assets that the grantor has not funded into the trust at the time of death. Absent explicit directions provided via a will, remaining assets would instead be subject to