A pour-over will is a type of will that work in conjunction with your living trust. Its purpose is to make sure any property that isn’t in your trust doesn’t become intestate property. Should that occur, probate can be more complicated for your loved ones to resolve, and the inheritance of that property is determined by law – not your preferences.
Trusts Are Useful, but Imperfect
Trusts are becoming the predominant way to transfer wealth from one generation to the next. While a trust can provide many important benefits – probate avoidance is chief among them – its efficacy relies on property being properly funded into it.
Should any money, real estate, or other property not be funded into a trust, it may be counted as part of an individual’s personal estate upon their death. Without a pour-over will backing up a trust, this property becomes subject to intestate succession. As alluded to above, California law determines who among your legal heirs can inherit intestate property and how much of it. Sometimes this differs from what you would otherwise direct in your trust or will.
You can avoid this outcome by backing up your trust with a pour-over will. Whether you mistakenly or intentionally left property out of your trust, your pour-over will can “catch” it and ensure it goes to your intended heir. Although going through probate is necessary under these circumstances, it’s preferable to intestate succession.
We Can Help You Secure Your Estate Plan
You can feel more confident about transferring your wealth to the next generation of your family with help from Nguyen Law Group.
Our attorney has many years of experience helping clients prepare estate plans of varying levels of complexity. No matter how simple or complex your estate plan needs to be, we can provide the guidance and services you require.
For more information about how we can help, contact Nguyen Law Group online today.