What Is A Pour-Over Will And A Trust?
Drafting a living trust as the foundation of your estate plan has multiple benefits for many people. One of the biggest advantages is that when a living trust is properly executed and funded, it can help your loved ones avoid the probate process. Probate is a court-supervised process that can create delays for your loved ones after you pass away and drain unnecessary fees from your estate.
It is often recommended that when a person creates a living trust, that they also create a pour-over will. Below, our St. Petersburg wills attorney explains what these documents are and why they are so important.
A Pour-over Will
A pour-over will is a type of last will and testament that transfers assets to a trust after a person dies. It is often used to supplement a revocable or living trust. A pour-over will can help avoid probate, maintain privacy as to your intentions for your estate, and catch any assets that were not transferred into your trust when you were alive.
Funding a Trust
After you have created your living trust, it becomes a separate entity from you and your estate. You must then transfer property into the trust, which is known as funding the trust. The trust then owns the property you have placed into it. While you do not technically own the property, you can still manage it during your lifetime and sell or transfer it just as you would otherwise. Due to the fact that the trust owns the property within it, the legal document allows your loved ones to avoid probate after you pass away.
Your trust will name a successor trustee who will manage it after you pass away. The successor trustee is bound by the terms of the trust and must distribute the assets within it according to instructions and Florida law.
Omitting Assets from a Trust
There are times when a person owns assets but has left them out of their trust. There are many ways this can happen. A person may simply forget to transfer assets into a trust, or they may prepay for a vacation and pass away before they are able to travel. A refund would then go to their estate, and not the trust, making it subject to probate.
As noted above, a pour-over will can help in these situations. A pour-over will states that after you pass away, any property that is not transferred into your trust but should have been, is poured over into the trust. This can ensure that all of your assets are distributed according to your wishes, and not only those that were properly transferred into the trust. The pour-over will acts as a safety net and backup plan in the event that assets are omitted from the trust.
Our Estate Planning Attorney in St. Petersburg Can Help with Your Last Will and Testament
When creating an estate plan, there are many important tools and documents to consider. At Legacy Protection Lawyers, LLP, our St. Petersburg wills attorney can advise on the important documents to include in your estate plan and will ensure they are drafted properly so you and your loved ones are protected. Call us now at 727-471-5868 or contact us online to request a consultation with one of our experienced attorneys and to learn more about how we can help with your case.
Sources:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
