A pourover will is a legal document that works in conjunction with a revocable living trust to ensure that any assets not already in the trust are transferred into it upon the death of the grantor. In this post we will explore the basics of pourover wills.
How a Pourover Will Works:
A pourover will is a type of last will and testament that “pours over” any assets that were not transferred into the revocable living trust during the grantor’s lifetime. This means that any assets that were not already included in the trust at the time of the grantor’s death are transferred into the trust through the pourover will.
For example, if the grantor forgot to transfer a bank account into the trust, the pourover will would transfer that account into the trust upon the grantor’s death. The pourover will does not designate beneficiaries for these assets, but rather directs them to be distributed in accordance with the terms of the revocable living trust.
Advantages of a Pourover Will:
- Ensures all assets are in the trust: By using a pourover will, the grantor can ensure that any assets that were not already included in the revocable living trust are transferred into it upon their death. The pourover will acts as a sort of “safety net” to catch any missed assets and transfer them to the trust.
- Simplifies Administration: By transferring all assets into the trust, the administration of the estate is simplified as all assets are managed and distributed through the trust.
- Can Be Changed: Like a revocable living trust, a pourover will can be changed or revoked at any time by the grantor.
Disadvantages of a Pourover Will:
- May Still Need Probate: If there are assets that were not properly transferred into the trust, the pourover will may not be sufficient to avoid probate.
- Does Not Protect Against Creditors: A pourover will does not provide protection against creditors, which could result in the loss of assets in the trust.
A pourover will can be a useful tool to ensure that any assets not already included in a revocable living trust are transferred into it upon the grantor’s death. By doing so, the administration of the estate is simplified and probate can be avoided. However, it is important to understand the potential disadvantages, including additional costs and the possibility of still needing probate if assets were not properly transferred into the trust. An experienced estate planning attorney can help determine if a pourover will is appropriate for your estate plan.
If you have questions regarding estate planning contact Chapman Law, PLLC to discuss your situation.
This blog is intended to provide general information and, therefore, should not be treated as legal advice. You should contact a qualified attorney for questions about legal issues.