A trust can be a very useful estate planning tool. It can give someone more control over one’s legacy and enhanced protection from collection activity later in life. Many people creating a trust transfer significant assets to fund the trust. They may then expect that the trust will serve as their primary testamentary instrument.
However, simply designating beneficiaries for the most valuable assets in an estate is not necessarily adequate estate planning. There are other resources someone also needs to address or they risk their loved ones fighting over their remaining assets. For example, a pour-over will helps decrease the likelihood of major conflict during the administration of someone’s state.
What a pour-over will does
Many people move significant assets, like real property or financial accounts, into a trust long before they die. Still, they may own thousands of dollars of other property not included in the trust or mentioned by name in their will. A pour-over will helps address those remaining resources.
Either specific assets or the remainder of someone’s estate can transfer to a trust after their passing if someone creates a pour-over will. The assets will need to pass through probate court, but the trust will ultimately have control over them after someone’s death.
A pour-over will can be a simple means of arranging for the controlled descent of the remainder of someone’s property that they did not want included in the trust while they were still alive. Pour-over wills can help people address their residuary estates and diminish the likelihood of estate beneficiaries fighting over assets after they die.
