The Right Answer :-
- A pour-over will is like any other will except that it has one beneficiary, a living trust. This type of will “pours” any property owned by the testator at death into a trust he or she set up before passing away. The assets will be subject to the distribution plan in the trust and will receive the benefit of the trust’s tax reduction provisions. Most estate planners today recommend this testamentary structure – a combination of a living trust and a pour-over will – with the primary objective being avoiding probate.
- Pour-over wills were void at English common law because the testator could change the disposition of the trust at any time and essentially execute changes to the will without meeting any formal requirements. Today, however, all U.S. jurisdictions recognize their validity, subject to slightly varying rules. A pour-over clause can be validated either by referencing a previously existing trust into which the property will be poured, or under the doctrine of acts of independent significance by referring to some act that has significance apart from disposing of probate assets.
Dec 18th, 2014
Oct 21st, 2016
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