What Is a Pour-Over Will and Why Might You Need One?

What Is a Pour-Over Will and Why Might You Need One?

Estate planning can feel like assembling a puzzle with pieces that don't always seem to fit. One piece that often raises eyebrows is the pour-over will. What is it, and why would someone need one if they already have a trust?

Let’s break it down.

What Is a Pour-Over Will?

A pour-over will is a special type of will that acts as a safety net for your trust. It essentially "pours over" any assets you didn't transfer into your trust during your lifetime into the trust upon your death. Think of it as your plan B.

How Does It Work With a Trust?

When you create a revocable living trust, you fund it by transferring assets like real estate, bank accounts, or business interests into the trust’s name. However, it's easy to overlook a few items. This is where the pour-over will step in.

If you forget to transfer certain assets into your trust or acquire new assets that weren’t properly titled before your death, those assets would normally have to go through probate. But if you have a pour-over will, those leftover assets can be directed into your trust after your death, ensuring they are distributed according to your wishes.

Why Does This Matter?

1. Completeness: A pour-over will help ensure all your assets are eventually governed by your trust, even if you missed something.

2. Privacy and Control: Once assets are in the trust, they can be distributed privately according to your instructions, bypassing public probate.

3. Consistency: It avoids conflicting instructions between your will and your trust.

   
   

Why Might You Need One?

Even the most careful planners may leave something out. You may have acquired a new property late in life, or you forgot to retitle a bank account. A pour-over will ensure those assets still make their way into your trust. It’s like having a net under your safety net.

Bottom Line

A pour-over will doesn’t replace a trust, it complements it. It gives your estate plan a backup system so your legacy and wishes are protected, even if everything doesn’t go exactly as planned.