A pour-over will is a specific type of will that directs any assets not included in a living trust to be transferred into that trust upon the individual’s death. This document ensures that all assets are managed according to the terms of the trust, simplifying the estate administration process. Below are three practical examples of pour-over will clauses to illustrate their usage.
In a straightforward case, an individual wants to ensure that any assets not already placed in their trust automatically go to that trust upon death. This clause serves as a catch-all for any assets.
In this scenario, John has established a living trust but forgot to transfer his newly acquired personal property to the trust. He includes the following clause in his pour-over will:
“I direct that all of my assets, including those acquired after the execution of this will, be transferred to the John Smith Living Trust, dated January 1, 2023, and that the trustee shall manage and distribute these assets according to the terms of said trust.”
This clause effectively captures any assets that John may have overlooked, ensuring they are managed according to his trust’s instructions.
Notes: It’s essential to regularly update the trust and pour-over will to reflect any changes in asset ownership or personal circumstances.
In more complex situations, individuals may want to make specific bequests before directing remaining assets into the trust. This is useful for those who wish to leave particular items to heirs while still utilizing a pour-over will.
Maria wishes to leave her jewelry collection to her daughter but also wants any other assets to go into her trust. Her pour-over will may include this clause:
“I bequeath my jewelry collection, specifically the diamond necklace and the pearl earrings, to my daughter, Emily Johnson. All remaining assets, including any property, cash, or investments, shall be poured over into the Maria Johnson Family Trust, established on March 15, 2022, to be administered by my trustee in accordance with the provisions of said trust.”
This clause allows Maria to honor her wishes for specific items while ensuring that the majority of her estate is handled as per her trust’s guidelines.
Variations: Specific bequests can also include real estate or sentimental items, depending on the individual’s wishes.
In situations where couples create a joint will, it is crucial to have a pour-over clause that reflects their mutual intentions. This ensures that the surviving spouse continues to benefit from the estate.
Consider a married couple, Tom and Lisa, who have established a joint trust. They include a pour-over clause in their joint will:
“Upon the death of either of us, we direct that all assets owned solely by the deceased spouse shall be transferred into the Tom and Lisa Joint Trust, created on February 10, 2023. The trustee is instructed to manage these assets according to the trust’s terms for the benefit of the surviving spouse and any beneficiaries as outlined in the trust document.”
This clause ensures that, regardless of who passes away first, the remaining assets are integrated into their joint trust, maintaining their shared estate plan.
Notes: Joint wills can complicate estate planning, so it’s advisable to consult with an estate attorney to ensure clarity and compliance with state laws.