The Basics of Pour-Over Wills: Coordinating Your Estate Plan
A pour-over will is an essential tool in coordinating your overall estate plan, ensuring that all your assets are managed according to your wishes even after you’re gone. But what exactly is a pour-over will? How could this effective estate planning tool benefit you?
To get better clarity on pour-over-wills, we will delve into the basics of pour-over wills, highlighting their importance, how they function, and how they, along with the help of a skilled estate planning attorney, can be a crucial part of your comprehensive estate plan.
Summary:
- What is a Pour-Over Will?
- How Does it Work?
- What Can Be Included in a Pour-Over Will?
- Benefits of Having a Pour-Over Will
- Creating a Pour-Over Will
1. What is a Pour-Over Will?
A pour-over will is designed to work in conjunction with a revocable living trust that will automatically transfer any assets not already included in the trust upon an individual’s death, thus ensuring that all property and assets are held in one place – the trust.
2. How Does It Work?
A pour-over will operate in tandem with a living trust as part of an integrated estate plan. Essentially, when an individual passes away, any assets that weren’t previously included in the trust are automatically transferred to it via the pour-over will.
Pour-over wills capture any assets unintentionally left out of the trust. The assets that pass through the pour-over will into the trust are then distributed according to the terms of the trust.
A pour-over will is often used a backup plan to ensure nothing is missed. For example, let’s say you inherited valuable family jewelry after creating your trust. You forget to include that piece of jewelry in your trust before you pass away. With a pour-over will, that precious family heirloom will be put in the trust courtesy of the pour-over will. Having a pour-over allows you to feel safe knowing that even if a valuable item is missed, it won’t be forgotten.
3. What Can Be Included In a Pour-Over Will?
A pour-over will can include a wide range of assets. Here are some examples:
- Real Estate: Properties that were not placed in the trust during the owner’s lifetime can be included in a pour-over will.
- Personal Property: This can include furniture, jewelry, artwork, vehicles, and other personal items that you own.
- Bank Accounts and Cash: Any bank accounts or cash holdings not already placed into the trust can be included.
- Investments: Stocks, bonds, mutual funds, and other investment accounts can be included if they were not already transferred to the trust.
- Business Interests: If the deceased owned a business or part of a business, these interests can be included in a pour-over will.
- Digital Assets: This is a newer area of estate planning and can include digital photos, social media accounts, websites, and other digital property.
- Intangible Property Rights: This can include copyrights, patents, trademarks, and other intellectual property rights.
4. Benefits of Having a Pour-Over Will
Here are the primary benefits to incorporating a pour-over will into your estate plan:
- Ensures Nothing is Missed: The main advantage is that it serves as a “catch-all” mechanism, transferring any assets not already included in a trust into the trust upon the individual’s death. This feature is especially useful for individuals who forget to transfer certain assets into the trust while they’re alive. It also allows for changes in life circumstances by accommodating new and unaccounted-for assets.
- Flexibility: Flexibility is also a major benefit because pour-over wills allow for the seamless transfer of assets to a pre-established trust, regardless of when or how these assets were acquired. This means that even if you acquire new assets shortly before your death, or forget to manually transfer them into your trust, your pour-over will ensure they are included in your estate plan. Another aspect of flexibility is that a pour-over will can be revised or revoked at any time during your lifetime, allowing you to adapt your estate plan as your circumstances change.
- Prevents Intestacy: A pour over will is effective at preventing intestacy (when you die without a will). It ensures that your assets are handled according to your wishes, and not arbitrarily distributed according to state law.
- Maintains Privacy: Lastly, a pour-over will maintains privacy. A will is a public document, and upon your death, anyone can view its contents. In contrast, a trust is a private document that does not become part of the public record. By using a pour-over will to transfer assets into your trust, you ensure that those assets remain private.
5. Creating a Pour-Over Will
To create a pour-over will, you should consult with an experienced estate planning lawyer who can guide you through the process. They will help ensure that all necessary legal requirements are met and that your pour-over will is in line with your overall estate plan.
A pour-over will ensures that all your assets are accounted for and directed to your chosen beneficiaries through your trust. By coordinating your estate plan with a pour-over will, you can have peace of mind knowing that your wishes will be carried out after you pass away.
If you’re looking for an experienced Wauwatosa estate planning lawyer, call Margerie Law. Our team can help you create a well-coordinated estate plan tailored to your unique needs and circumstances. Contact us today to schedule a free consultation.
By Paul Margerie, Owner of Margerie Law
Paul Margerie of Margerie Law is a knowledgeable and experienced estate planning attorney based in Wauwatosa, WI. With years of experience helping families and individuals with their estate plans, he offers a gentle touch that puts his clients at ease. He understands the sensitive nature of this work and ensures that all details are taken care of with precision and accuracy. He strives to help each client achieve peace of mind that their future is protected by providing personalized advice and creating tailor-made solutions that fit their individual needs.
