What Is a Pour-Over Will?

    A pour-over will may be compared to a “safety net” with intentions to protect and distribute any assets per the terms of the trust as to avoid a probate proceeding. 

    A revocable living trust is a legal document that allows you, the grantor, to fund assets to and manage during your lifetime. It also determines how your assets will be distributed if you become incapacitated or pass away. 

    Any eligible assets that are not included in your trust for whatever reason may be ultimately disposed of by way of the pour-over will, allowing for the potential of all of your assets to be managed according to the terms of your trust.  One example may be tangible personal property that will be poured over to the trust by its terms.

    One distinction between a living trust and a pour-over will to be aware of is that assets that have already been transferred to a trust are not subject to probate. However, any residual assets included in a pour-over may still have to go through probate depending on various factors, including the value of the assets and underlying title. Probate does come with added time and fees.   

    It is imperative to seek counsel related to these documents and your specific assets. EP Wealth estate planning professionals are here to help with this process. 

     

    When Might You Consider a Pour-Over Will?

    You may wonder if a pour-over will is a good addition to your estate plan. Here are the primary factors of this estate-planning tool. 

    • Possible asset control: Without a pour-over will, estate assets may be distributed according to state laws, which may not align with your overall estate planning strategy. 
    • Goal of beneficiary protection: By pouring assets over to a trust, the pour-over will potentially protects beneficiaries by helping to ensure the trust's terms—which may include asset management and protection provisions— apply to all assets.
    • Potential simplicity and consistency: A pour-over will may simplify estate planning because assets not necessarily titled in the trust may be poured over to the trust and subject to the same trust provisions. This may provide consistency in how the estate is managed and distributed.
    • Naming executors and guardians: A pour-over will allows you to name an executor to manage your estate and to act as the representative in the probate process, if needed. Similar to a stand-alone will, a pour-over will can also name guardians for minor children, providing a comprehensive estate plan that achieves multiple objectives.

    Despite the benefits of pour-over wills, they are not suitable for every individual and every estate plan. EP Wealth advisors take time and care to understand your unique estate planning needs and create a practical strategy to help you reach your goals. Call, connect online or find an advisor near you to get started.

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