Understanding a Pour-Over Will in Estate Planning

During estate planning, you want to be sure you’re looking at all your available options in order to leave your loved ones in good care when you pass on. This includes understanding what a pour-over will is exactly, and whether or not you need it.

Learn everything you need to know here now.

Introduction

Nobody wants to think about life after they’re gone. Though, while it may be a tough subject, it is a necessary one. Think about it – your whole life has been dedicated to building your family and your home. You have acquired assets – including your family home that is full of lifelong memories.

You may tell yourself that your family gets along – and they will sort everything out evenly once you’ve passed. You may tell yourself that your family will be cared for by what you leave behind. However, telling yourself is one thing. Putting a plan in place is another. When you’re gone, you cannot relay your wishes. And, because grief can be such a heavy emotion, it can lead to family disputes and even downfalls.

This is why estate planning is so important. Except – mistakes happen. You can be so busy with life that you are going through your estate planning and miss an asset here or there. Then what happens?

Here’s where a pour-over will make an entrance with its star role.

Estate Planning and Probate Woes

Say the word probate around a group of individuals and you will likely hear some scoffs, grunts, and dirty words. Nobody wants their life being weeded through with a fine-toothed comb for months upon months in probate court.

Most people want to do what they can to thoroughly plan for the distribution of their estate rather than leave it in the hands of the probate court. Here’s why:

• Probate court can, on average, last about six months – or more. Of course, this will depend on the size of the estate, the situations within it, and your local court system.
• Probate court consists of a lot of tedious paperwork and formal processes. Even if everyone agrees (which isn’t often), the probate process can be overwhelming.
• Privacy disappears in probate court. The assets and debts often all become public record.
• Costs, court fees, executor fees, and attorney’s fees can all make the entire probate process rather expensive.

Sadly, the most difficult part of probate is that – while the assets are tied up in court proceedings – the decedent’s family is often left without access to any funds. Monthly bills have to be maintained. For those who are heavily grieving, this can be an even bigger burden to carry.

A Pour-Over Will Defined

What happens when you do everything right and have your assets all placed in a trust? You feel confident that if something happens to you, all of your family – especially your spouse and children – know exactly what your wishes are as to the distribution of your assets. However, let’s say you put this trust in place in 2017. Then, in 2019 you acquired a new asset or two. Maybe you thought of adding them to your trust but never got around to it. Maybe you were getting ready to add, but something happened and you lost your life before you had the opportunity.

Well, you can rest easy if you have a pour-over will. This legal document is put in place to make sure that all remaining assets of yours that are not currently in your trust get transferred there upon your death. That’s right – it works with your current trust.

How It Works

As you put your trust together, you create a pour-over will that works by stating that, upon your death, all remaining assets of yours will be poured over into the trust that you designate. Rather than have these assets distributed among certain individuals, heirs, or beneficiaries, they will become part of your trust and will be handed as the trust instructs.

Just as you would name a beneficiary of your trust, this legal document names your trust as the beneficiary of your estate. Therefore, everything remaining will end up here. And, since a trust keeps your estate out of probate, you don’t want any unassigned assets outside the trust to land in probate either.

Who Needs a Pour-Over Will?

Ideally, anyone who has a trust should make sure they have a pour-over will in place. Unless, of course, he or she has other plans for miscellaneous assets. When you travel, you always have a backup outfit in case something happens. Or, when you are cooking a new dish, you always have an idea of a backup dinner in case the recipe goes horribly wrong. These are minor instances that could have outcomes that do not totally impact your life or those you love. Yet, you have a backup.

Why wouldn’t you want a backup – or a safety net – when it comes to your loved ones? It’s an easy way to ensure that your estate is handled exactly as you want it to be when you are not here to do so.

Setting up a trust is a thorough process because you want to make sure all the I’s are dotted and all the T’s are crossed. With the busyness of life, though, things happen. And one simple forgotten step could create a lot of frustration for those you leave behind. Why chance it when there is a step you can take to prevent it?

Closing Thoughts

You have worked hard for everything in your life. When you die, what will become of your assets and investments? How well will your children and your spouse be cared for? There are steps that you have to take now that ensure the future of those you love.

First, you want to consider a trust. Don’t wait until you reach a certain level in your assets – anyone can look into estate planning so do so before it is too late. But, because you want to be meticulous, you will want to add a pour-over will to your trust. Let it protect everything that didn’t make it into the trust.

Your wishes will be followed when the time comes without worry.

We understand – this is some tough stuff to think about. Though, it is not something that should ever be pushed aside. Life is short and can be over in an instant. Contact an attorney today to get your estate planning in order. The time is now.