Pour-over wills are a common and useful estate planning tool. A testator who creates a pour-over will may want to make sure that the residue of their estate passes to a trust upon their death. Sometimes property will end up in an estate and the testator has not provided a provision in their will for how the property should be distributed to heirs or liquidated or given as a gift to another party. A pour-over will is a comprehensive estate planning instrument for the majority of testators.
The Benefits of Having the Residue of the Estate Poured Over Into a Trust
A trust is created by a settlor. The trustee manages the trust corpus and does this for the benefit of beneficiaries. Trustees have a fiduciary duty to act in the best interests of the trust beneficiaries. One primary benefit of having a trust is that the contents are private, and they are not exposed to public scrutiny. Also, trusts provide individuals and families with many tax benefits that can help preserve a portion of your estate.
A trust may be revocable or irrevocable. Most trusts created individuals are revocable, and this means the settlor can revoke the trust any time before their death. A trustee must not mismanage the trust corpus. The corpus is the body of the trust, and it may include real property, securities, tangible personal property, cash, and other assets. All trustees must manage the trust property in a manner that will be in the best interests of the beneficiaries.
When the residue of an estate is poured over into a trust it prevents the property from going through probate. Probate administration costs money and time, and many individuals seek out the assistance of an estate planning attorney because they want to avoid probate administration. A will acts as a set of instructions to the probate court, but if the contents are poured over into a trust then the remaining property in the estate will not be probated.
An Estate Planning Attorney Can Provide You With Exceptional Legal Representation
An estate planning attorney can help you determine which legal instruments are most suited for your estate planning goals. All clients have different experiences with estate planning, and we can help you no matter your level of experience with estate planning. You do not need to handle your estate planning responsibilities on your own. It is necessary for you to consult with an estate planning attorney so you can obtain the best estate plan possible for the needs of you and your family members.
Contact L. Jennings Law to Learn More About How a Pour-Over Will Can Benefit You and Your Family Members
You may not be familiar with the technical aspects of estate planning, but consulting with a knowledgeable estate planning attorney will help you learn more about your legal rights. If you want to know more about creating an effective and tailored estate plan, contact us today to schedule a free consultation.