Combining Pour-Over Wills and Testamentary Trusts in Boca Raton

When it comes to estate planning in Boca Raton, the possibilities are almost endless. You can choose from many different trusts and Wills, and your estate planning attorney can help you personalize an estate plan that fits your unique goals. Two of these choices include pour-over Wills and testamentary trusts. They each perform different roles, but they may complement each other when used in combination. Is this even possible?

What Is a Pour-Over Will?

A pour-over Will is a type of Last Will and Testament that automatically transfers your personal assets into a trust. This may be useful if you’re worried about having excess assets left outside your trust at the time of your passing. While a trust protects your assets from creditors, probate, and other threats, you actually need to transfer your assets into the trust before they gain these protections.

Suppose you receive considerable dividends or treasury bond yields at the end of every year. If you pass away shortly after receiving these assets, you might not have enough time to transfer them into your trust. As a result, those assets would need to go through probate before being distributed to your beneficiaries.

A pour-over Will solves this problem by ensuring that any of these leftover assets get transferred into your trust. 

What Is a Testamentary Trust? 

A testamentary trust is a type of trust that goes into effect after you pass away. Like a pour-over Will, a testamentary trust begins as a set of instructions in your Will. Before your passing, the trust itself does not actually exist. It is only after your passing that the trustee follows the instructions in your Will and creates the trust. At this point, assets gain protection under the newly established trust.

Can You Use Both Together? 

You can theoretically use both testamentary and pour-over Wills together. It is worth noting that a pour-over Will cannot function without a trust, and you will need to create a trust in some form if you want to benefit from a pour-over Will. If you already have a trust in place, you may not need an additional testamentary trust along with your pour-over Will.

You should also know that testamentary trusts cannot avoid probate. Since the instructions for the trust exist in the Will, probate is necessary before the trust can go into effect. This may not be advisable for all families, particularly if probate avoidance is a priority. Speak with a probate lawyer to learn whether this combination truly serves your best interests.

Can a Boca Raton Estate Planning Lawyer Help Me?

A Boca Raton estate planning lawyer may be able to explain testamentary trusts and pour-over Wills in more detail. While both are perfectly valid estate planning strategies, they may not be appropriate for everyone. In addition, it might make more sense to choose one rather than both. Discuss this subject in more detail by contacting 411 Probate today. We serve residents of Boca Raton, Aventura, and Plantation.

Source:

floridabar.org/public/consumer/pamphlet026/