A standard or traditional will identifies an individual’s beneficiaries and provides instructions for the administration of their estate. Individuals who established trusts may use a trust to replace a will.
Their trust can provide better control over the distribution of property and can even help protect resources from creditor claims and other issues. Occasionally, people who have already transferred their most valuable property to a trust may leave behind a pour-over will to strengthen their estate plans.
What impact does a pour-over will have on estate administration?
Property can transfer to a trust during probate
People funding trusts often prioritize the transfer of resources that could trigger estate taxes, cause conflict among their beneficiaries or be at risk of liquidation if creditors make claims against their estates. Their personal property, including their household furnishings and clothing, may not seem as important to address as their high-value assets. They may retain direct ownership of those assets until they die.
A pour-over will allows a testator to posthumously transfer their residuary estate to the trust that they previously established. They retain sole ownership of those assets until after they die. Any assets not used to fund their trust or directly addressed in other documents become their residuary estate.
A pour-over will allows for the transfer of the residuary estate to the trust during probate proceedings. Pour-over wills help prevent scenarios in which family members or personal representatives struggle to address personal assets that the testator did not previously transfer to their trust.
Understanding the function of different documents can be critical for personal representatives and family members during probate proceedings. Pour-over wills help ensure that a trust has control over assets that the deceased party had not previously transferred to their trust.