Most people fully fund trusts when they initially create them. They promptly transfer financial accounts, real property and other valuable resources to the trust as funding.
The trust then owns and controls those resources, giving the trustor protection and increased control over the use of those assets after they die. Especially in cases where the trust serves as the primary testamentary instrument for an adult with valuable resources, the trustor funding the trust may want to address their remaining assets, including household furnishings and other personal property.
In such a situation, a specific type of will can help facilitate the transfer of any remaining property to the trust after the trustor dies.
Pour-over wills can help fund trusts
Usually, a will includes the names of specific beneficiaries who should inherit certain resources from the estate. A pour-over will is different. It essentially provides instructions to transfer all remaining property in the name of the decedent to the trust after they die.
The transfer occurs as part of the probate process and ensures that the trustee has control over the management and distribution of those resources. A pour-over will is a convenient means of addressing any residual property not already transferred to the trust. This arrangement gives the testator control over their resources until they die and then ensures that the trust manages that property after their passing.
Working with an attorney to properly structure and fund a trust can help people leave a more robust legacy for their loved ones or for certain charitable causes after their passing. A pour-over will can be an important part of a comprehensive estate plan that includes a trust.