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How does a pour-over will work with a trust?

On Behalf of | Aug 12, 2022 | Wills |

Having a trust as part of your estate plan is no longer something reserved for the rich and famous. A lot of people are recognizing the value of trusts when it comes to reducing estate taxes, avoiding probate and passing wealth safely onto the next generation.

So, if you’ve thought about using a trust as part of your estate plan, you’re already in step with the times – and you’re doing what you can to make your passing easier on your loved ones.

What happens to any assets that haven’t made it into the trust by the time you die? You’re unlikely to stop acquiring new assets once you’ve established the trust, and there may be things that you acquire after that you forgot to title in the name of the trust. There may also be things you never included in the trust.

A pour-over will is a safety net

A pour-over will basically controls everything that isn’t already owned by the trust at the time of your passing.

Assets that are caught by the pour-over will do have to go through the probate process, first, but they can eventually be put into the trust just as you originally intended. The goal is that those assets will eventually become part of the trust and be distributed to your heirs.

Estate planning is never a “one and done” experience. It’s wise to keep reviewing your estate plan every few years (if not more often) so that you can make any necessary changes as you go. Working with someone experienced in estate planning can help you achieve your goals with a minimum of stress.