What is a Pour-Over Will?

What is a Pour-Over Will?Wikipedia gives this definition of a pour-over will: “A pour-over will is a testamentary device wherein the writer of a will creates a trust, and decrees in the will that the property in his or her estate at the time of his or her death shall be distributed to the Trustee of the trust.”

Huh?

Put simply, a pour-over will is a type of will you need to create if you have a living trust. With a living trust, your assets are held by a trust, rather than by you, although as the named trustee you have complete control. Living trusts were all the rage some years back, and they’re still useful in some cases.

People often think that if they have a living trust they don’t need a will. But that is a big mistake you don’t want to make.

The problem with a living trust is that every single asset in your name has to be transferred into the trust when you create it. And every asset you acquire after you create the trust needs to be held in the trust’s name. But in the real world, things are often missed.

People forget to transfer every asset, so when they pass away, these assets don’t simply pass to the successor trustee the way they’re supposed to.  That’s where the pour-over will comes in.

The will provides direction to “pour over” (hence the name) into your trust any probatable asset that is in your name, outside of the trust, at the time of death. This is important because, without this will, those assets will pass to your heirs according to state law—so your long-estranged husband or child might get an asset you’d prefer goes to someone else.

Unfortunately, because it’s a will, if you do have these assets in your name, your estate will have to be probated—one of the main things people who create a living trust think they’re avoiding.

So it’s not only important to create a pour-over will, it’s important to sit down with your documents once each year and be sure you haven’t acquired any property or other assets that are not in the trust. If there are, move them now.

If you would like more information about estate planning in South Florida, contact the Law Office of Gary Landau for a FREE legal consultation at 954-979-6566 or by email. Attorney Gary Landau personally returns all calls and emails to him.

Estate Planning for Single Parents

No one with young children wants to think that something might happen to them. But for a single parent, that difficult thought brings on added worries. After all, what will happen to your child should the unthinkable happen.

Estate Planning for Single ParentsEveryone with children should prepare a will and other important documents. In my law practice in South Florida, I help single parents carefully think through what they would want to happen to their child if they unexpectedly passed away or became incapacitated. Here are a few guidelines to help.

Make a Will

Younger people often think a will is something older people need. But parents of young children, and especially single parents, need a will more than almost anyone else. That’s because in addition to money and property, you have the care of your child to consider. Whether your assets are vast or modest, a will carefully lays out your wishes. This keeps your children from experiencing a lengthy court battle among various relatives, which happens more often than you might think. You’ll want to revisit and update the will as your children grow.

Name a Guardian

One of the most important sections of your will is to name a guardian. This person, a very close relative or friend whom you trust deeply, will care for your child if you pass away and the child’s other parent is not alive or has no parental rights; a guardian can also manage the money that goes to your children from your will.

You can additionally name a guardian in a document outside of your will. Florida law allows you to designate a “preneed guardian,” a person who will be legally responsible for your children if you become incapacitated, a condition that does not trigger the will. This simple document can be drafted by an attorney when they make up your will.

You’ll want to revisit your choice of guardian over the years. Someone who might be appropriate for your children when they are young might not be best if they are teenagers, especially if that would mean uprooting them to another state.

Consider a Trustee

If you prefer to break up the roles of the person who would care for your children and the one who oversees their money, you can name a trustee in your will to manage your child’s assets.  The trustee’s role can terminate when your child reaches adulthood, or can continue for as long as desired.

Determine If You Need a Special Trust

If you have a lot of money or a child with special needs, you might want to create a trust for your children. This money is placed into the trust at a bank when you create it. Your child cannot access this money until they reach the age you specify, typically 21 or later.

Life Insurance

You can name your minor child as a beneficiary of your life insurance. But if you pass away before they become of age, their guardian or trustee will be in charge of the money.

If you are interested in drafting a will or other documents for your estate planning in South Florida, contact the Law Office of Gary Landau for a FREE legal consultation at 954-979-6566 or by email. Attorney Gary Landau personally returns all calls and emails to him.