You might think that you have to address all of your assets when creating an estate plan. While there can be a lot of advantages to specifying how each individual asset will be distributed upon your death, this methodology can lead to errors when you forget to mention certain assets in your estate plan. When this happens, there can be familial infighting over who will obtain those assets, putting the dynamics of your family at risk, and threatening your estate with otherwise avoidable costs. This is why it might be beneficial to utilize a pour-over will.
What is a pour-over will?
Through a pour-over will, you can specify where any unaddressed assets will be directed once you pass away. For example, if you forget to specifically address assets that you acquire after you create your estate plan, the pour-over provision of your will can act as a catchall, directing those assets to those you most want to inherit. This can be especially helpful if you have trusts but neglect to place assets into those trusts before passing away. This type of will can also add an additional layer of protection by specifying how trust assets should be distributed in the event that those trusts become invalidated for some reason.
Are there disadvantages to a pour-over will?
Not really. While a will has to go through the probate process, including this type of catchall vehicle has benefits that far outweigh the costs you may experience during the probate process.
What sort of estate plan is right for you?
Ultimately, that’s a question that only you can answer. But you can gain a better sense of what works for you by educating yourself on the various estate planning vehicles at your disposal. If you want to learn more about how you can use effective estate planning to bring your vision of the future into reality, then now is the time to start researching your options.