There is a certain kind of will that has an unusual name. A “pourover will” references a will that benefits only the testator’s living trust. It transfers assets to the trust. These assets are then subject to the trust’s distribution plan. They also will benefit from the trusts’ provisions that reduce taxation.
Get it? It “pours” assets into the living trust, thus its name.
Actually, the only assets controlled by a pourover will are probate assets. This doesn’t include those in a trust, joint tenancy, inherited by a spouse who is still alive, nor an IRA or 401K (unless there was a failure to name a beneficiary).
A threshold in state law determines whether or not a pourover will must go through probate itself. A pourover will can also distribute tangible personal property to heirs or name executors and guardians for minor children. It can contain tax allocation clauses and other provisions. A pourover will can revoke a prior will.
Why Is Such a Will Necessary?
What are the reasons for a pourover will? Sometimes people don’t transfer assets to their Living Trusts due to mistakes, negligence, or procrastination. Perhaps they don’t fully understand how a trust works.
Unsworth LaPlante, PLLC in Vermont can help ensure that all your Estate Planning is done in proper fashion.