Creating time to work on your estate plan is a smart move because it helps ensure that your affairs are always current. If you are like most people, you are most likely focused on setting up a trust or drafting a conventional will.
While a conventional will is an invaluable estate planning tool, there is one more tool that you should not overlook. Setting up a pour-over will can help you enjoy the full benefits of a comprehensive estate plan. A pour-over will works in tandem with a living trust to simplify asset transfer and add a layer of security to your estate plan.
Seamless asset transfer to your trust
One of the key incentives to create a pour-over will is to secure any assets you might forget to place into your living trust. Suppose you acquire new property or accounts and forget to title them in the name of the trust. A pour-over will can help make sure such assets are directed into the trust after your passing.
Seamless asset transfer helps minimize the risk of leaving out assets from your estate plan. This can allow you to rest easy knowing that your beneficiaries will receive everything intended for them. By acting as a safety net, the pour-over will may reduce administrative headaches and put all your assets under the trust’s management.
Simplified estate administration
Pour-over wills can significantly streamline estate administration for your beneficiaries. Without it, any asset you forgot to place in your trust may need to go through a separate probate process, which can be time-consuming, expensive and emotionally draining.
With a pour-over will in place, even if assets must go through probate, assets are directed into a trust quickly and efficiently. Once inside the trust, the assets are distributed according to its instructions. This can allow your family to bypass the need for multiple probate proceedings.
Privacy protection for beneficiaries
A major advantage of using a living trust is the privacy it provides during probate proceedings. Unlike a traditional will, which can become subject to public scrutiny, the terms of a trust remain private. A pour-over will helps funnel any forgotten assets into the trust. This continues to preserve privacy for your assets.
A pour-over will may not be the most glamorous component of estate planning, but its role is critical when putting your affairs in order. With the right tools and suitable legal guidance, you can leave behind wealth and peace of mind for your loved ones.