Creating a trust can be an efficient way to give your heirs an inheritance. Remember that when you compose your trust, you must be sure to fund it or assign ownership of property to the trust. Even if you complete this important step, you may come into valuable assets later on but fail to transfer them to the trust before you die.
Unassigned property will become part of your estate, which means it will likely go through probate. Bankrate explains that drafting a pour-over will could help you avoid this outcome by making sure leftover property ends up in your trust.
What to know about a pour-over will
A pour-over will is not the same as a traditional will. An ordinary will assigns your estate assets to people you designate as heirs. However, a pour-over will stipulates that any assets remaining in your estate must go into your trust. Basically, it “pours over” your estate into your trust after your death. Once in your trust, the poured-over assets will be subject to the terms you established in your trust documents.
The drawbacks of a pour-over will
Even though a pour-over will can help your remaining estate assets avoid probate, the will itself must go through the probate process. This means your heirs will still have some time to wait before they can benefit from those assets. Also, individuals can challenge a pour-over will in court just like a regular will, which will prolong probate.
While there are possible drawbacks to consider, a pour-over will may still be beneficial. If your pour-over will meets the requirements of Georgia law and your family has no problem with your estate wishes, your will stands a good chance of clearing probate in a timely manner.