Pour-Over Will
If you have a revocable living trust designed to avoid probate, you might assume that you no longer need to have a will. After all, a trust-based plan is designed to transfer all your assets in a manner that keeps assets out of your estate, and a will directs the disposition of property in your estate. If you don’t have an estate, then it might seem like you don’t need a will.
However, it is always a good idea to have a pour-over will when you have a revocable living trust. This document is specifically designed to coordinate with trust-based estate plans, and it serves as a backup measure to cover assets that may have inadvertently been left out of the trust. Jones Law Firm, PC can prepare a pour-over will that will ensure that your assets can still be distributed in accordance with your trust terms.
What is a Pour Over Will?
A pour-over will is an estate planning instrument that was developed to operate in conjunction with a living trust. It ensures that any assets not explicitly included in your trust at your death are ultimately transferred into the trust. This type of will is essential for capturing any overlooked or newly acquired assets that you have not had the chance to add to your trust formally.
Key features of a pour over will:
- Asset Transfer: Automatically transfers leftover assets into your trust when you pass away.
- Simplicity in Planning: Reduces the complexity of managing multiple directives for different assets.
- Consistency and Control: Maintains the centralized control of asset distribution through your trust.
Benefits of Implementing a Pour-Over Will in Colorado
Implementing a pour-over will in Colorado provides numerous benefits, helping to streamline the estate administration process and ensure privacy and control over the distribution of your assets. This document serves as a safety net to catch any assets that might have been excluded from your trust, ensuring they are distributed according to the trust’s terms. If you don’t have a will, assets left out in your estate will be distributed according to terms set by Colorado intestacy laws. This could allocate property in a way you never intended.
Although assets transferred via a pour-over will go through probate, they eventually feed into the trust, which offers a more private management and distribution process than direct bequests under a standard will and keeps distributions in line with your plans.
You can update your pour-over will as needed throughout your life, offering flexibility as your situation changes.
How Does a Pour Over Will Work?
The process of incorporating a pour-over will into your estate plan involves several key steps:
- Establishing a Trust: Set up a revocable living trust and transfer your significant assets.
- Creating the Will: Draft a Pour Over Will that directs any assets outside the trust at your death to be transferred into the trust.
- Coordination of Estate Plan: Ensure that your Pour Over Will and trust work harmoniously, reflecting all your estate planning wishes.
When you pass away, if all your assets transfer through your trust and other means, then the pour-over will does not need to be admitted to probate. If there are assets that require probate, however, your personal representative can admit the pour-over will to probate and use the document to transfer those assets into the trust for distribution to your beneficiaries.
Setting Up a Pour Over Will
To effectively implement a pour-over will, the team at Jones Law Firm, PC will work with you to discuss your overall estate planning goals and how a pour-over will fits into your plans. We can help you identify all assets and determine which are already placed in the trust and which may need to be realigned. Remember that the pour-over will is a protective measure, but the goal is to pass assets outside of probate. The assets identified as needing realignment could potentially be transferred through the pour-over will.
Our team will draft a pour-over will that meets your specific needs and legal requirements in Colorado. As your life circumstances change, we can help you periodically review and update your will and trust to ensure they continue to reflect your current wishes.
Ready to Secure Your Estate? Contact Jones Law Firm, PC
Proper estate planning ensures your assets are protected and distributed according to your wishes. At Jones Law Firm, PC, we have experience helping Colorado residents create effective estate plans tailored to their unique needs, including the strategic use of pour-over wills.
If you are ready to start planning or need to review your current estate plan, contact us at 720-513-5983 or visit our website. Let us guide you in preparing a comprehensive estate plan that secures your legacy and protects your loved ones.