You’ve heard of wills, right? Those documents where people say who gets their stuff when they pass away. Now, imagine a will that acts like a safety net. It catches anything you might have missed when planning. That’s a pour over will. So, what is a pour over will exactly? Let’s dive in.
Understanding The Basics
Think of your belongings as water in a pitcher. Now, imagine two cups. One cup is your trust, and the other is everything else. A pour over will is like pouring any leftover water from the pitcher into the trust cup. It ensures that all your stuff goes exactly where you want it to, especially if you forget something.
Why Use A Pour Over Will?
Some people have a trust. It’s a tool that holds and manages your assets. Trusts can be great because they offer benefits like privacy and avoiding probate. Probate is the legal process where the court checks if a will is valid. This process can be long and costly.
When you put most of your assets in a trust, you aim to avoid probate. But no one’s perfect. You might forget to add something to the trust. That’s where the pour over will comes in handy. It acts as a backup. Anything not in the trust gets “poured” into it when you pass away. This way, all your belongings stay under one umbrella.
Setting Up A Pour Over Will
Making a pour over will is like making any other will. You need to make sure it’s legal and valid. Working with a lawyer is a smart choice. They can guide you and ensure everything is in order. Here’s a simple process:
- Meet with a lawyer. They will know the rules and can help you make a solid plan.
- List your assets. Write down everything you own. This includes money, houses, cars, jewelry, and even smaller things.
- Designate the trust. Clearly state that any leftover or missed assets go to the trust.
- Sign and witness. Just like other wills, you need to sign it. Usually, you also need a couple of people to watch you sign and then sign it themselves. They act as witnesses.
What Happens Next?
After you pass away, any assets not already in the trust get moved there. They get managed and distributed based on the trust’s rules. Remember, the goal is to keep things simple and avoid the long probate process.
A Few Points To Remember
- Update Often. Life changes. You buy new things. You sell others. Make sure you update your will and trust when big changes happen.
- It’s Not a Substitute. A pour over will is great as a safety net. But try to put as much as you can in the trust from the start. It makes things smoother later.
- Work With Experts. Legal stuff can get tricky. Lawyers and financial advisors can be your best friends in this journey.
End Note
In conclusion, a pour over will acts as a safety net for your trust. When you wonder, “what is a pour over will?” think of it as the tool that ensures nothing gets left out of your trust. This is one of the more common recommendations we often have for young families.
Whether it’s the house you forgot to include or the new car you just bought, this will makes sure everything finds its way to the right place. Always be prepared and give yourself peace of mind by having a pour over will in place. Give us a call today to discuss whether this option makes sense for you and your family.