You are going to hear a lot of unfamiliar terms thrown around when you are planning your estate, but one you should not ignore is “pour-over will.” This is a type of will agreement that can help you pass down your assets to beneficiaries, even if you forgot to make plans for specific items. If you are ready to learn more about this option, read on. Then contact a Monmouth County estate planning lawyer who can answer any questions that you may have.
What Are the Benefits of a Pour-Over Will?
If you are still living your life, earning income in some way, or collecting things that could be valuable, you may end up in possession of some items that are not specifically detailed in your estate plan. A pour-over will takes this into consideration and such a document can help you make sure that any new assets flow into your trust automatically.
For example, let’s say that you collect sports memorabilia. You have made your will and want all of your memorabilia passed down to your only child, who shares your passion for sports of all kinds. Then you acquire some valuable new items, like signed jerseys or valued sports cards. Even if these assets were not mentioned in your estate plan at the time you made it, a pour-over will ensures that they end up controlled by your trust and that they are distributed in line with your wishes.
What Kind of Trust Do I Need With a Pour-Over Will?
Two types of trusts work well with a pour-over will. You can establish a:
Revocable trust: This is a living trust that allows you and your spouse to continue controlling all of your own assets. The terms of this trust can also be changed by you.
Irrevocable trust: This is a living trust that puts control of your assets in the hands of a trustee that you have chosen. This is often used by people with large estates that could be affected by estate taxes.
Either of these trusts can be established with the assistance of an estate planning lawyer.
What Happens If I Do Not Have a Will?
Not having a will can make it difficult for you to ensure that your assets and property are passed onto the right person. If you die intestate, without a will, the court decides who gets which assets through the probate process. This can take a long time and it can cost a significant sum of money. You are better off making an estate plan and figuring out if a pour-over will is the right fit for you.
Talk to Our Legal Team Today
The estate planning process can be confusing, but our experienced attorneys are ready to walk you through it. Contact the Law Offices of George J. Mardinly and schedule a consultation today. We can answer any questions about pour-over wills, trusts, and anything else.