What is a pour-over trust?

A pour-over trust is a common estate planning technique used to transfer assets into a trust at the time of the person’s death. This type of trust is intended to “pour over” any assets that were not already transferred into the trust prior to the person’s death. It is the additional assets that do not currently belong to the trust that “pour-over” into the trust at the death of the owner. In North Carolina, this type of trust is often used as an additional layer of estate planning and asset protection. This is because a pour-over trust will protect the assets from creditors and will also make sure that the assets are distributed according to the trust’s terms when the owner dies. Any assets not already in the trust at the time of death will be added to the trust and distributed to the beneficiaries according to the terms of the trust. A pour-over trust is also beneficial because it is an efficient way to ensure that all of the assets are transferred into the trust without having to make any additional transfers or amendments to the trust. This makes it easier to manage the trust and also ensures that the assets are distributed according to the owner’s wishes. Furthermore, a pour-over trust can often save the owner money by allowing them to avoid probate costs.

Related FAQs

What is probate and how does it work?
What is the difference between a will and a codicil?
How can I protect my assets from taxes?
How can I avoid probate on my estate?
Can I disinherit a spouse in a will?
How do I know if someone has made a valid will?
How do I execute a durable power of attorney?
What is the difference between a living will and a last will and testament?
What are the consequences of failing to properly execute a will?
What is the difference between a revokeable and irrevocable trust?

What is a pour-over trust?

Related FAQs

Related Blog Posts