Creating an estate plan is an effective way to make decisions and give directions on what will happen to your estate after your death. No matter which estate planning tool you use, such as a trust or will, its enforceability may hinge on its features and functions.
Many people use wills in their estate plans, but there is a version that works in tandem with a trust: a pour-over will. This type of will typically covers your residual assets and transfers them into a trust after your death.
Using a pour-over will appropriately
Before creating a pour-over will, it can be essential to establish a revocable living trust first, which can help you stay in control of your assets during your life. You can then determine what assets to use for funding and immediately keep them under the trust.
If you have properties and other assets left outside the trust for any reason, you can draft a pour-over will indicating your intentions to include them in the trust after passing on. You can use this type of will as a safety net when you are still going through your estate, which can take a long time, based on your situation.
Benefitting from a pour-over will
Having this document can give you the peace of mind that all your assets left out of the trust will enter it eventually after your death. A pour-over will can help subject your residual assets to whatever conditions you enforce in the trust. Depending on their details and value, these assets may still go through probate. To maximize the benefits of your estate plan, regardless of what tools you incorporate, you could seek legal counsel. Experienced guidance can help you draft a comprehensive plan that can work as intended and preserve its validity over time.
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