Many people know it is critical to have a will—and sometimes a trust—as part of their overall estate plan. However, they may not know that there are different types of wills that can be utilized, depending on the person’s financial and personal situation. One of the more unique options is a pour over will. A pour over will works in combination of a trust, assisting the transfer of assets if the person who established the trust—called a grantor—did not transfer all the assets they wanted into the trust. Because pour over wills are a new concept for many, below are common questions and explanations about pour over wills.
How Does a Pour Over Will Work?
A pour over will functions after an individual has already created a trust and funded the trust—meaning, they have placed certain assets in the trust to be given to beneficiaries after their death in order to avoid the probate court process. However, as people tend to acquire more assets after the creation of the trust—and they may forget or not have the time to place these assets in the trust too—a pour over will can ensure these assets are still placed in the trust. A pour over will allows the grantor of the trust to state that any assets not previously added in the trust should be included upon the grantor’s death. These assets would then be treated the same as those initially added to the trust.