What is Pour Over Will?
A pour over will is a last will and testament that serves as a safety device wherein the writer of a will makes a trust, and decrees in the will that the property or home in his or her property at the time of his or her death shall be allocated to the Trustee of the trust, or we can say that a pour-over will is a particular type of last will and testament applied in conjunction with a trust-based property plan.
It can save the day when the grantor of a trust — the person who made it — disregard to transfer all his property into the trust over the years and has no other will to identify which recipients should receive that left out property.
How does Pour Over Will work?
If you have looked into making a revocable living trust to prevent probate, you may have listened to a “pour-over will.” This type of will is usually utilized with a living trust. Under the terms and conditions of a pour-over will, all estate planning that passes through the will at your death is transmitted to (poured into) your trust.
Rather of managing the distribution of all your property or home, a pour-over will basically states that any aid that have not been funded into your revocable living trust need to go there when you die.
It efficiently titles your trust as beneficiary of any estate it does not previously hold and that does not pass straight to a living beneficiary by some other means, such as a beneficiary status on a life insurance policy or a retirement account.
Pour Over Wills Require Probate: One of the best thing of living trusts is that they prevent probate of the property with which they have been funded. However, any of your property that is not funded into your trust before you die will require probate even if it’s instructed to your trust through a pour-over will.
Why we need Pour Over Will ?
People make a revocable living trust to stay away from probate. A pour over will is also implemented to enable any unidentified assets outside the trust to pass via the pour-over will into the trust upon the testator’s death. Trust property or home is then allocated to trust beneficiaries.
When you create a pour-over will, you are informing the probate court that any resources that are not already in the trust should be included to the trust upon your death.
Mainly because these assets must continue to go through the probate procedure in order to be added to the trust, a pour-over will is not a substitution for an effectively managed living trust. It does, nevertheless, deliver peace of mind in case an asset is not added to the trust before your death.
Advantages of Pour Over Wills
Simplicity: When all the thing is managed by just one document or paper, the trust, it makes it clear who gets what. It’s also much easier for the executor and trustee who are in charge of covering up your property after your death.
Completeness: You are not going to transfer everything you own into your living trust. A pour-over will takes care of assets that you don’t get around to transferring to the trust before your death.
Privacy: Trusts, unlike wills, are private, they don’t turn into general public records after your death, readily available to anyone who wants to look at them. This maintains the details of who inherits your property more private.
Disadvantages of Pour Over Wills
The major disadvantage or negative aspect of pour over wills is that the property must still go through probate. The distribution of the trust property could be postponed in probate before it will eventually be distributed to the trust. Even so, to prevent that step, the property can be transferred straight to a living trust, as compared to a pour over will, and your beneficiaries may be ready to receive their inheritances much faster.