When you create a revocable trust, you need to include a pour-over will, especially if that trust is the center of your estate plan.
Why a Pour-Over Will?
A revocable trust will only control the property that is directly transferred to it. If you acquire additional property without transferring it to the revocable trust, such as opening a new bank account, it will no longer be owned by the trust upon your death. A pour-over will can correct this issue. Since the pour-over will state that all of your omitted assets are moved into the trust and distributed just as if they were transferred, all of your assets are covered regardless if they were in the trust or not.
Pour-over wills are very effective tools for ensuring your assets are protected and given to the right beneficiaries.
Don’t Rely on the Pour-Over
Though you have a pour-over will, do not rely on it. It is still best to transfer your assets officially into your trust each time you acquire a new one. Though this can be tedious, it ensures all of your estate’s assets are protected. Also, any assets that are transferred to your trust from the pour-over will are still subject to probate court, which means your loved ones can wait for some time before receiving them.
Latest posts by Stephen Unsworth (see all)
- A Hypothetical Conversation Between an Inheritance Planning Attorney and a Client - June 12, 2019
- Avoid Intestacy to Prevent Future Problems - May 22, 2019
- Two Business Structures That Provide Asset Protection - May 1, 2019