When creating an estate plan, you have to ensure that you have everything covered. For some, this means inventorying their assets and specifically addressing each one of them in their estate planning documentation. While there’s nothing wrong with handling your estate plan in this fashion, it can be burdensome, and it can become easy to miss assets as you accumulate more wealth. Fortunately, there’s a safety net you can create to ensure that all of your assets are protected and distributed to your preferred beneficiaries. This comes in the form of a pour-over will.
The basics of a pour-over will
With a pour-over will, any assets that you’ve failed to transfer to your established trust will automatically be placed within the trust upon your passing. This ensures that all your assets reach their destination, which would be the beneficiary of the trust in question. This helps ensure that assets don’t slip through the cracks and end up in the wrong hands.
Although a pour-over will has to go through the probate process, it also provides additional legal protection. For example, this will can specify that the assets are to be given to the trust’s designated beneficiary, which would ensure the assets reach their intended recipient even if the trust, for whatever reason, were to be found invalid.
Take a holistic approach to estate planning
There is a wide variety of ways to approach your estate planning. You have to find the vehicles that are best suited to your wishes and what you hope for your loved ones’ futures. So, before finalizing your plan or making any changes to an existing plan, consider discussing your intentions with a professional so that you can rest easy that you’re making the right informed decisions.