What is the purpose of a pour-over will?

People drafting estate plans often select one testamentary instrument. Testators often feel like they must choose between a will or a trust. Many people can achieve all of their legacy goals with a will. They can appoint a guardian for their children, allocate their resources to specific beneficiaries and even nominate someone to serve as their personal representative.

Others may choose to establish trusts. They can transfer assets to the trust, provide instructions about the distribution of those assets and appoint someone they trust to act as trustee. Either option can be effective in a variety of circumstances with customized documents.

In some cases, people may even want to use both a will and a trust for optimal control. If a testator intends to use a trust to manage their biggest and most valuable resources, it will may only be necessary to address other details, including their residual estate. In such scenarios, a pour-over will can be an appropriate addition to an estate plan.

What is a pour-over will?

A traditional will designates beneficiaries who inherit the assets held by the estate. Testators may allocate specific assets to individual beneficiaries or may instruct their personal representative to transfer a certain percentage of the estate to each of their beneficiaries.

A pour-over will is different. Its main function is to allow for the transfer of any personal property belonging to the decedent to the trust that they already established. This arrangement allows the testator to maintain control over those assets throughout their life but to allow a trustee to manage them after their death.

Unlike the assets used to fund the trust prior to the individual’s passing, the resources transferred to the trust through the pour-over will are subject to probate court oversight. There are certain scenarios in which a pour-over will may not be the best option. However, for those with valuable personal property, including furniture, housewares and collectibles, a pour-over will can be an effective way to ensure that their trust manages those resources after their passing.

Drafting a number of different documents can help people provide for their loved ones and guide the use of inherited property. Pour-over wills can be valuable estate planning documents for those who want to create and fund a trust.