What is a Pour Over Will?

A pour over will literally “pours over” all of your assets into a trust that you have already established.  In this type of situation, there is no probate estate, since all of your existing assets are placed in the trust upon your death, thus becoming non-probate property, which is then distributed to your beneficiaries, pursuant to the terms of your trust document. 

Advantages and Protection from Pour Over Wills

One significant advantage to a pour over will is that there is no need to fund the trust, or place any assets into it, prior to your death; upon your death, all of your assets automatically are transferred to the trust.  This method allows you to maintain the liquidity of your assets, in that they need not be tied up in a trust during your lifetime.  Plus, in many jurisdictions, it may be difficult to maintain insurance on items of property that are held in a trust, such as real estate or vehicles, and there may be unwanted tax consequences if certain assets are owned by a trust while you are still alive.  A pour over will also protects against the common occurrence of failing to add some recently-acquired asset to the trust prior to death.

Example of Pour Over Will

If you inherit an antique or buy a rare book prior to your death, but fail to include it in your trust, a pour over will would automatically transfer that asset to your trust, thus avoiding probate with regard to that particular asset if a regular will exists, and avoiding distribution of the asset through intestate succession laws if no will exists at the time of your death.  In either case, the asset that you omitted from the trust may result in distribution to an unintended party, absent a pour over will.

Help with a Pour Over Will

In order to avoid unforeseen consequences and unwanted complications with regard to your assets following your death, you should be sure to work with an estate planning attorney to ensure that your needs and goals regarding your assets are met.  An attorney will be able to advise you as to whether you need a pourover will, as well as any benefits and/or disadvantages that a pourover will might pose in your particular situation.