Pour-Over Will
Estate planningGlossary term
Definition
A type of will designed to work in conjunction with a revocable living trust, ensuring that any assets not already held in the trust at the time of death are transferred, or 'poured over,' into the trust. This acts as a safety net to catch any assets that were inadvertently left outside the trust during your lifetime. Assets that pass through a pour-over will still go through probate before being added to the trust.
Related terms
- Revocable TrustA trust that can be modified, amended, or completely revoked by the person who created it (the grantor) during their lifetime. Also known as a living trust, it allows the grantor to maintain full control over the assets while alive and provides for a smooth transfer of assets upon death without going through probate. Because the grantor retains control, the assets in a revocable trust are still considered part of their taxable estate.
- WillA legal document that outlines how you want your assets distributed and your affairs handled after your death. A valid will typically names an executor to carry out your wishes, designates beneficiaries to receive your property, and can also name guardians for minor children. Without a will, state laws determine how your estate is divided, which may not align with your preferences.
- ProbateThe legal process through which a deceased person's will is validated by a court, their debts are settled, and their remaining assets are distributed to beneficiaries. Probate can be time-consuming and costly, often taking months or even years to complete depending on the complexity of the estate and state laws. Many estate planning strategies, such as trusts and beneficiary designations, are specifically designed to help assets avoid probate.
- TrustA legal arrangement in which one party, called the trustee, holds and manages assets on behalf of another party, known as the beneficiary. Trusts can be used to control how and when your assets are distributed, potentially reduce estate taxes, and avoid the probate process. There are many types of trusts, each designed to address specific financial and estate planning goals.
Get advice that uses your real numbers
Warren reads your accounts and explains what terms like this mean for your plan. Free to start, no credit card required.