Many people create trusts as part of their estate plans to simplify asset distribution and avoid probate. However, even if you have a trust, not all your assets may automatically become part of it. If you want your assets to “pour over” into your trust after your death, there are specific steps you need to take to ensure your wishes are carried out smoothly.
Understanding a Pour-Over Will
A pour-over will is a legal document that works alongside your trust. It acts as a safety net for any assets that were not transferred into your trust during your lifetime. When you pass away, the pour-over will directs those remaining assets to “pour over” into your trust, where they can then be managed and distributed according to your trust’s terms.
For example, if you bought a new property but forgot to title it in the name of your trust, a pour-over will ensures that property is still transferred to the trust after your death. This helps keep your estate plan consistent and centralized under one legal structure.
Steps to Make Sure Your Assets Pour Over Correctly
Create a Revocable Living Trust
First, establish a revocable living trust, a flexible tool that allows you to manage your assets during your lifetime. You’ll serve as the trustee while you’re alive, maintaining full control, and appoint a successor trustee to handle things after your passing.
Draft a Pour-Over Will
Next, work with your estate planning attorney to create a pour-over will that names your trust as the beneficiary. This document ensures any assets not already in the trust will transfer there upon your death.
Properly Title and Fund Your Trust
While the pour-over will provides a safety net, it’s still best to fund your trust during your lifetime. This means retitling assets like real estate, bank accounts, and investment accounts into the name of your trust. Doing this minimizes the assets that must go through probate, saving time and costs for your loved ones.
Keep Your Estate Plan Updated
Life changes, new property purchases, business ventures, or family additions, may affect your estate plan. Regularly review and update your trust and pour-over will to make sure everything remains aligned with your current wishes.
Benefits of a Pour-Over Will
- Simplifies administration: All assets ultimately end up in your trust, streamlining the management and distribution process.
- Provides privacy: Once assets are in the trust, their distribution remains private, unlike a standard will that becomes public through probate.
- Ensures completeness: It catches any assets that may have been overlooked, offering peace of mind that your estate plan is comprehensive.
Conclusion
Planning for your assets to pour over into your trust after your death ensures that your estate is managed according to your wishes and that nothing is left out of your trust’s protection. By creating a pour-over will, properly funding your trust, and keeping your estate plan updated, you can provide your loved ones with a smoother and more efficient process after you’re gone.
Remember, this information serves as educational and informational content only and is not a substitute for legal advice. Before making any changes to your estate plan, consult with a lawyer you trust to ensure your decisions align with your individual needs and circumstances. Click the link below to set up a meeting with O’Brien Estate Law, LLC, where we can discuss your specific situation and guide you towards a comprehensive estate plan.