By Lane V. Erickson, Attorney
Estate Planning offers many options for individuals and families with simple or with complex estates. Anyone who has looked into creating a living trust has probably heard the term “Pour-Over Will” but few really understand what they are or how they work. After all, if you are interested in creating a Living Trust you likely want to avoid probate and the need for a Will in the first place. Here are 3 things to know about a Pour-Over Will.
1. What a Pour-Over Will is
A Pour-Over Will is used whenever a Living Trust is created. It’s purpose is to provide for the organized transfer of any property you own at your death, that you haven’t already transferred into your Living Trust. It may be surprising for you to learn that often times people simply forget to transfer property into their Living Trust before they die. Additionally, it is not uncommon for an individual to obtain or buy new properties that aren’t already transferred into their Living Trust before they die.
A Pour-Over will captures all remaining property and transfers it into the Living Trust after your death. By having a Pour-Over Will, you are assured that all of the property that you own at the time you die is transferred into and owned by your Living Trust. From this Living Trust distributions to your beneficiaries can be made in an orderly and organized way.
2. Advantages of Pour-Over Wills
The advantages of a Pour-Over will are obvious. A Pour-Over Will provides for an assurance that a complete transfer of all your property has occurred. By having a pour-over will you will know with certainty that all of your property is contained within your Living Trust.
3. Disadvantages of Pour-Over Wills
The disadvantages of a pour-over will are all so obvious. Most of the property that goes into your pour over will may have to be probated in order for it to transfer into your living trust. Essentially what this means is that the very probate you were intending to avoid must still occur to transfer whatever property is captured by your Pour-Over Will. This probate will not include property that you transferred into your Living Trust prior to your death. From this perspective, even though a probate must occur, it will be much more simplified and much more private than a regular Probate.
If you have any questions about a Pour-Over Will and how it works in conjunction with a Living Trust, please contact us so we can answer your questions. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your Idaho Estate Planning questions and will help you solve your Idaho Estate Planning problems.
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