Legal Definitions - pourover will

A pourover will is a specific type of last will and testament designed to work in conjunction with a living trust. Its primary purpose is to direct any assets that are part of the deceased person's probate estate, but were not previously transferred into their trust, to "pour over" into that existing trust after their death. This ensures that all of the individual's assets are ultimately managed and distributed according to the terms of their trust, rather than being distributed separately through the probate process or by the will's terms alone.

• Example 1: Sarah established a comprehensive living trust years ago, transferring most of her significant assets, like her home and investment accounts, into it. However, a year before her passing, she purchased a new antique collection and opened a new checking account, but forgot to formally retitle these new assets into her trust. When Sarah passes away, her pourover will would direct these newly acquired assets, which are still in her individual name, to be transferred into her existing trust. Once in the trust, they would be managed and distributed according to the trust's instructions, alongside all her other trust assets.

• Example 2: Mark had a living trust and a pourover will in place. Shortly before his unexpected death, he inherited a substantial sum of money from a distant relative. This inheritance was deposited into a personal bank account, and Mark hadn't had the chance to formally transfer it into his trust. Without a pourover will, this inherited money might have been distributed according to the general terms of a standard will or even through intestacy laws if no will existed. However, because Mark had a pourover will, this inherited sum would be directed into his trust, ensuring it is managed and distributed to his beneficiaries as he had planned within his trust document.

• Example 3: The Chen family established a living trust to manage their estate and ensure a smooth transition of assets to their children without extensive probate. They also created a pourover will as a safety net. Even though they diligently transferred most of their assets into the trust, they understood that minor assets might be overlooked or acquired later. For instance, if a small refund check arrived after their death, or a forgotten savings bond was discovered, the pourover will would ensure these items are collected by the estate and then transferred into the trust. This simplifies the overall estate administration, as all assets eventually fall under the single, unified management of the trust, rather than requiring separate probate proceedings for small, untrusteed items.