You are a financially savvy Colorado resident who has set up a living trust to protect your assets while still benefitting from them. You may, nevertheless, have overlooked one document that many find useful. Do you have a pour-over will?
A pour-over will is one that works with a living trust so that any assets you own at the time of your death go into the trust even if you didn't place them there during your lifetime. Basically, you instruct the executor of your pour-over will to place any such assets in your trust.
Advantages associated with pour-over wills
Pour-over wills can have the following benefits:
- A pour-over will can help ensure all of your assets ultimately wind up in your living trust.
- You can stop worrying that you may have forgotten to place a newly acquired asset in your living trust.
- It can help with maintaining financial privacy.
Pour-over will probate
While one of the main advantages of a living trust is that it is not part of your probate estate, a pour-over will must go through probate. Unlike most probate proceedings, however, ones involving pour-over wills are generally simple and reasonably quick. Once the executor collects whatever assets are not in the living trust, the only things (s)he typically has to do are pay the outstanding bills and request permission from the court to pour over all remaining assets into the living trust. At that point, the designated trustee will distribute the assets in accordance with the trust's provisions.
As a note, it is generally very important for a pour-over will to mention the living trust it will be connected to and vice versa. This may require not only the execution of a new will, but also an update to a living trust.