Illinois residents who are at the beginning of their estate planning journey might think there’s only one type of last will. However, there are many different types of wills that can be used as extra protection for your estate plan.
What is a pour-over will?
A pour-over will is one type of last testament that can act as a backup for someone’s estate plan. Specifically, it can move assets and property into a trust after the grantor’s death.
This type of will is meant to address assets that the grantor neglected to move into the trust. From there, the trustee would transfer those assets to any beneficiaries or family members.
Why would you rely on trusts?
Trusts give you more control over how your assets are distributed. Sometimes, trusts are used to avoid probate, making it easier to transfer assets directly to family members and loved ones after your death.
These trusts can also be used to avoid estate taxes, at least temporarily. Your beneficiaries will still have to pay taxes on anything they pull from the trust, but only when they’ve taken it from the trust.
Who are pour-over wills and trusts meant for?
Someone who has a really large estate might not be able to go through all of their belongings and accounts to determine who gets what. In addition, it might be more complicated to move each individual asset into a singular trust – especially if you’re already dealing with health issues.
Using a pour-over could make this process almost painless. Instead of it being a lengthy process, the hardest part will be setting up the trust.
Is a pour-over will right for me?
What estate planning tools you use depends entirely on your family and the property that you would be leaving behind. With so many different trusts and other estate planning tools to choose from, it’s important to review options carefully.