Estate planning is an essential process that you must carry out if you want to make sure that your loved ones are provided for once you have passed. The whole idea of estate planning is to decide where and how your assets will be divided upon your death so that there is no confusion or ambiguity, allowing people to mourn and grieve without the added stress of probate.
However, there are many different types of estate planning, and in this article, we will take a look at the pour-over will definition, and what a pour-over will entail so you can decide whether or not it’s suitable for your estate planning. Let’s get into it.
What Is A Pour-Over Will?
So what is a pour-over will? First things first, let’s take a look at what exactly a pour-over will means if you are residing in Nevada. Simply put, a pour-over will is a legal document stating that some, or all of an individual’s assets will be transferred to their designated trust, rather than to specific heirs or beneficiaries.
The term “pour-over” means that all of the individual’s remaining assets will be placed into the trusts after any gifts have been given or individual transfers have been carried out. Any assets that are unaccounted for are poured over into the trust.
How a Does it Works
A pour-over will is simply a will that names your trust as the beneficiary of your estate. If you have forgotten to allocate any of your assets, or if there are any items not accounted for after your death, they will pour over into the trust as per the outlines in the pour-over will.
One of the main benefits of this process is that a pour-over trust typically forgoes the need for probate, or at the very least it will make it a streamlined and simple procedure. According to the Nevada Revised Statutes Chapter 375A, under Nevada probate law, if the deceased person’s assets total more than $20,000 then they must enter into the probate process. On top of this, the estate will automatically go into probate if there are any real estate assets involved.
However, in Nevada, a pour-over trust can help to avoid this bureaucratic process. Consult an experienced Las Vegas attorney for advice on your specific circumstances to see the maximum amount that you can include in your living trust.
Do I Need A Pour-Over Will?
Whether or not you need a pour-over depends entirely on your circumstances and how you wish for your assets to be distributed upon your death. As mentioned in the pour-over definition, it’s intended to act as a safety net to capture any untransferred and unallocated assets into your trust.
For most people, a pour-over will is typically a good idea as it prevents any untransferred assets from becoming part of your estate and entering into the probate process. This can be long, costly, and difficult for your loved ones, which is why most people look to avoid it if at all possible.
What Is A Pour-Over Will In A Living Trust?
So, what is a pour-over will in a living trust? Well, if you want to set up a pour-over will then you must have a working living trust to act as the beneficiary of your estate. A living trust, otherwise known as a revocable living trust is a legal entity that holds ownership over your assets.
As you will be the one setting up the living trust, you will be known as the trustmaker, and will typically act as the trustee as well. This means you will have the full right to manage and control the assets that are placed within the trust. The act of doing this creates a separate legal entity that allows the trust’s assets to be distributed outside of the probate process.
In an ideal world, you won’t need your pour-over trust to come into effect as you will already have all of your assets transferred or accounted for upon your death, however, life doesn’t always work out that way. If you feel that you need the comfort that a pour-over will brings then you should reach out to an experienced Las Vegas probate attorney who can advise you on where to go to set up a revocable living trust and your pour-over will.
If you don’t have your estate planning in place, there may be a chance that someone could challenge a will that would require a trust litigation attorney to deal with the case.
For more than 30 years, Attorney Lee A. Drizin has practiced in the areas of estate planning, probate, trusts, guardianship and real estate matters representing clients throughout the state of Nevada.
Drizin Law is providing this information for educational purposes only. It should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. This information is based on general principles of Nevada law at the time it was created and you should be aware laws frequently change. Moreover, the laws affecting you may differ depending on the circumstances. You should consult with a qualified attorney in your own state or jurisdiction concerning your particular situation. Review of this information does not create an attorney-client relationship.