DOES CREATING A REVOCABLE LIVING TRUST HELP ME AVOID WRITING A WILL?Published On: Thursday, December 14, 2017
A pour-over will is a special type of will used in conjunction with a trust-based estate plan. Instead of governing the distribution of all your property, a pour-over will simply states that any assets that have not been funded into your revocable living trust should go there when you die. A pour over will is important because it names your trust as beneficiary of any property it does not already hold, including any property the grantor neglects to transfer into the trust over the years, and any assets that do not pass directly through a beneficiary designation on a retirement account or life insurance policy.
A trust can help you avoid probate, reduce the likelihood of a court dispute over your estate, and keep the disposition of your assets private after your death. However, there are some things you can’t do in a revocable living trust. A will is necessary for naming guardians for minor children, naming managers for children’s property, and instructing how your debts and taxes should be paid after your death. Another reason for having a will is that you can limit the time period for creditors to file a claim against your estate under the probate system. While assets in a living trust are not safe from creditors, initiating probate will cause the shortened statute of limitations against creditor claims to apply to all assets, even those held in the trust.
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