What is a pour-over trust?

A pour-over trust is a type of trust estate planning tool used in Wills and Probate Law in Maryland. It transfers property from one trust to another trust, and is often used in conjunction with a Last Will and Testament. The pour-over trust allows assets that are not designated in the Will to be transferred into the trust upon the death of the person creating the Will. In this way, the pour-over trust can act as a “catch-all” for the deceased’s assets, ensuring that all of their assets are distributed according to their wishes. Pour-over trusts are especially helpful in estate planning because they can help avoid probate court proceedings. In probate court, a court will distribute the deceased’s assets, meaning that it can take a long time for the assets to be distributed depending on the complexities of the estate. By having a pour-over trust, assets that would have normally gone to probate court can be transferred directly into the trust, allowing for a much faster and smoother distribution of assets. In Maryland, pour-over trusts must follow certain guidelines and be created in accordance with the state’s Trust and Probate Laws. Generally, pour-over trusts must be in writing, and the trust must include the names of those involved in the trust and a detailed description of the assets that are in the trust, along with the instructions for the trust’s distribution. Ultimately, pour-over trusts are effective tools to ensure that a trust’s assets are distributed in the way that the deceased wanted, without having to go through the potentially lengthy process of probate court proceedings.

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What is a pour-over trust?

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