When making your estate plan, you have several powerful legal tools to choose from, such as a pour-over will. You might be surprised at how powerful this estate planning document can be in preserving your asset distribution preferences.
It works in conjunction with a living trust, which is another effective estate planning tool, providing a seamless way to handle any assets not transferred to the living trust during your lifetime. As its name suggests, it “pours over” these assets to move them into the trust. A pour-over will authorizes that any assets not already in your living trust be transferred there upon your death.
Even if you like to keep your estate plan documents updated and aligned with your financial interests, a sudden death could leave valuable assets at risk. A pour-over will facilitates asset management under the specific terms of the living trust.
Pros and cons to consider
Using a pour-over will can offer several advantages, such as simplified estate management and peace of mind about uncovered assets. However, there are downsides to consider as well. Here are two examples:
- Probate process: Assets may still have to go through probate before being transferred to the trust, which can be time-consuming and public.
- Limited scope: It only covers assets not already included in the living trust, so it may not be comprehensive, especially without diligent management.
When you understand how estate planning documents work, including pour-over wills, you can make informed decisions about what to include in your plan. For additional guidance with a pour-over will and other estate planning tools, it’s wise to have experienced legal guidance.