A pour-over will is a special type of will that works alongside a living trust. It ensures that any assets you own at the time of your death that you haven’t already placed into the trust are “poured over” into it.
If you have a trust in place, a pour-over will acts as a safety net, directing everything you own to the trust after you pass.
How does a pour-over will work?
A pour-over will serves as a backup for property you didn’t transfer into your trust before death. Typically, when you create a living trust, you should transfer all significant assets into it. However, you may forget to include a few items, whether newly acquired or simply overlooked. If that happens, a pour-over will ensures that those assets are added to the trust.
When you pass away, the assets in your estate that aren’t in the trust at the time of your death will transfer into it. This process eliminates the need for probate on those assets, streamlining the estate administration.
Pour-over will in California
California legally recognizes the pour-over will and frequently uses it to avoid a lengthy probate process. The state’s probate laws allow you to transfer assets to a living trust through this type of will, but certain conditions must be met. First, the pour-over will must specifically reference the trust and the assets intended for transfer. The trust itself doesn’t need to be part of the will, but the assets must be clearly identified.
California law also allows you to execute pour-over wills the same way as other wills, with signatures and witnesses, making it relatively easy to integrate this into your estate planning.
Benefits of a pour-over will
The main benefit of a pour-over will is that it avoids probate on the assets that pour over into your trust. Additionally, it ensures that all your assets get managed according to your wishes, even if you forget to transfer some into your trust before your death. This simplicity and ease can save your loved ones time and money during a difficult time.