Creating a trust may help you transfer money and property to loved ones without the hassle of probate, but like any estate planning method, you may have to update your trust with new assets. However, there is the chance you will not get to place more wealth into the trust before your death.
If your assets fail to make it into your trust, they will become subject to probate. If you do not have a will, intestate law will dictate who receives your property. Fortunately, a pour-over will could prevent this from happening.
How a pour-over will functions
Your last will and testament directs your property to individuals or organizations. However, you can also use a pour-over will to pass property into your trust after your death. This makes sure the property does not stay in your estate during probate.
A pour-over will is generally simple. It states that whatever assets remain in your estate after you die shall go into whatever trust you have created. Even if you suffer incapacitation or infirmity that does not allow you to update your trust with additional property, this type of will can put your wishes into action after your death.
Possible delays in carrying out the will
Implementing a pour-over will may not go without some challenges. While you can make sure your assets end up in your trust, the pour-over will remains subject to probate. This can lengthen the amount of time it takes to transfer your property to the trust.
Additionally, traditional wills can be the subject of legal challenges, and pour-over wills are not an exception. So if litigation erupts over the validity of your pour-over will, your wishes may take even longer to manifest.
A pour-over will can function well as a safety net, but it is not infallible if problems erupt during probate. Regular updates to your trust, if possible, can serve as a more failsafe method to realize your wishes.