How a pour-over will works in Ohio

by | Oct 19, 2017 | blog, Firm News

Thoughtful estate planning now can save your loved ones hassle and expense down the road. If you have arrived at the stage of making arrangements, you may be considering various options.

valid will is one way to convey your wishes concerning your estate. Some Ohio residents may also want to use a living trust, which can cut down on probate procedures and afford tax benefits.

Making your living trust more effective

When you set up a living trust, you may want to begin funding it right away or make provisions for funding after you pass. A pour-over will typically works in conjunction with a living trust. In broad terms, you make this will leaving all your money to the trust. Hence the term “pour-over”: you use the will as a vessel to transfer your funds.

Using the pour-over as a catch-all

You can opt to use a pour-over will whether or not you have funds in the trust already. Especially in the case of those who do the smart thing and take care of these matters far in advance, transfers and fluctuations of funds can continue to occur for many years before estate planning mechanisms need to go into action. You may intend to transfer certain funds or proceeds to the trust but never get the chance to do so. A pour-over will can sweep up any assets you may have forgotten or not gotten around to transfering and deposit them into the trust for distribution to the trust’s beneficiaries.

You can also use the pour-over will to make specific bequests if you do not actually want everything going into the trust. Just as with a normal will, you can specify assets you want to leave to specific people and make a provision leaving everything not specifically listed to the trust.

Avoiding probate

However, if you prioritize avoiding probate, a pour-over may not work for you. It is still a will and must therefore undergo the probate process. Speaking with a lawyer can help you understand the best options for you and clarify any ways to streamline probate or address any other concerns you may have.