Even with the most careful planning, you may still leave some important or valuable assets out of your trust, putting them at risk of not going to your intended beneficiaries. This is when a pour-over will comes in. It acts as a safety net, making sure that any missed or unlisted assets will move into the trust when you pass away.
How does it work?
A pour-over will basically instructs the executor of your estate that any assets not already part of your trust are moved into the trust upon your death. Under Nevada law, if your will specifies that some or all of your estate should go to a trustee of a nontestamentary trust (a trust created during the decedent’s lifetime and not as part of the will), this portion of the estate can go directly to the trust without the need for full probate administration. This can simplify the process, as it avoids the more involved steps typically required in probate.
When do you need a pour-over will?
There are many situations where a pour-over will may be beneficial and even necessary:
- You acquire new assets: It’s not uncommon for people to buy a piece of real estate or gain a valuable collection after establishing their trust. Timing can be unpredictable in life, and you may not be able to transfer your new assets into the trust. A pour-over will can align any missed assets with your overall estate plan.
- You may have overlooked certain assets: Forgetting to account for smaller assets or personal belongings happens more often than you think. This can include items like jewelry, family heirlooms or even bank accounts you opened after creating the trust. A pour-over will ensures that they go to your intended beneficiaries.
- There may be changes in asset ownership or titling: During your lifetime, you may find yourself refinancing a property or retitling assets for various reasons. These changes might inadvertently remove assets from the trust’s ownership. A pour-over will captures these assets and redirects them into the trust after your death.
In each of these situations, a pour-over will provides a crucial layer of protection and assurance. An attorney can help you create an enforceable document and ensure that your estate plan covers all potential scenarios.
