Understanding 'Pour Over Will'
The Pour Over Will is an essential component of a Trust-Based Estate Plan. It serves as a safety net, ensuring that any assets not specifically transferred to your trust during your lifetime are "poured over" into the trust upon your passing. This way, the assets are then managed and distributed according to the terms of your trust.
What is a 'Pour Over Will'?
A Pour Over Will is a vital estate planning tool that works alongside a Living Trust. It specifies how your remaining assets—those not already transferred to your Trust—should be handled after your passing. The primary function of this document is to ensure that any assets you own at the time of your death that have not been placed in the Trust will be transferred into it, ensuring they are managed according to your established wishes.
How does a Pour Over Will work?
A Pour Over Will is a specific type of will that designates your Living Trust as the beneficiary for all your assets. Upon your death, any assets that were not already placed into your Trust are "poured over" into it. Essentially, it serves as a backup plan, ensuring that all your assets are managed according to the terms of your Trust. This is particularly helpful if you forgot to transfer assets, were unable to do so, or chose not to during your lifetime.
It's important to note that a Pour Over Will is different from a Last Will & Testament, which serves as the primary document in a Will-Based Estate Plan. A Pour Over Will is designed to work alongside a Trust and does not function effectively on its own.
Do I need a Pour Over Will?
Importance of a Pour Over Will
A Pour Over Will may seem unnecessary if all your assets are already in your Trust, but it serves a vital role as a safeguard for any future acquisitions or overlooked assets. Here’s how it functions at different stages of asset management:
At the Time of Trust Creation
When you initially sign and notarize your Trust documents, your Trust is not yet 'funded'—meaning no assets are officially placed into it at that moment. Thus, everything you own, aside from assets like life insurance or retirement accounts with designated beneficiaries, falls under the coverage of your Pour Over Will.
After Funding Your Trust
As you transfer assets into your Trust, these assets are no longer protected by the Pour Over Will. The coverage gradually shifts from the Pour Over Will to the Trust itself. Ideally, once all intended assets are transferred, nothing should remain under the Pour Over Will’s jurisdiction.
Acquiring New Assets
If you acquire new assets after establishing the Trust—such as purchasing a new home—those assets are initially protected by your Pour Over Will. This coverage lasts until you formally integrate the new assets into your Trust. This mechanism ensures that all new acquisitions are temporarily safeguarded until they are added to your Trust.
How do I create a 'Pour Over Will' document?
When you purchase an Estate Plan, we generate a 'Pour Over Will' document based on the information you provide in the questionnaire. This document is tailored to align with your Living Trust and ensures that any assets not already included in the Trust are transferred into it upon your passing.
How to Access Your 'Pour Over Will' Document
You can view, download, or print your 'Pour Over Will' directly from the Estate Plan tab:
How to Edit Your 'Pour Over Will' Document
While you can't directly modify the final 'Pour Over Will' document in the Estate Plan tab, you can update specific sections through the Summary tab. Any changes you make there will automatically be reflected in your 'Pour Over Will'.