How Does a Pour-Over Will Works in Florida?
Sometimes people leave behind both a revocable living trust and a Will when they die. Usually, in this situation, the Will directs that any remaining property not in the trust be transferred to the trust and then divided among beneficiaries. This kind of a Will is called a Pour-Over Will. An estate-planning attorney can draft a Pour-Over Will in Florida to complement a living, revocable, or irrevocable trust.
Advantages of a Pour-Over Will
A creator of a trust can use a Pour-Over Will to transfer assets to their living trust that they did not transfer when they were still alive. The creator of the trust does this so that those assets are distributed into the living trust before they go through probate. This is because the court no longer recognizes those assets as probate assets but as trusts.
You should know that it takes a long time for assets to go through probate. Pour-Over Wills also help keep private how the property is divided to beneficiaries, which helps reduce the risk of litigation. You can also use a Pour-Over Will to provide for guardians of your minor child as it protects your assets in the event that your trust is found to be invalid or is not in existence when you die.
What are the Cons of a Pour-Over Will?
The main problem with a Pour-Over Will is that, just with any other Will, the assets that pass through the Will must go through probate. That means that the assets the deceased passed to their beneficiaries will become public knowledge. The catch here is that once the assets are transferred to the living trust, no one will know how the trust distributes the assets that were poured into it. You should talk to an estate planning lawyer to find out if there is a probate shortcut in your state for assets in Pour-Over Wills.
Florida Pour Over Will Example
You have to appoint an executor to administer your Pour-Over will after you die. The executor’s only function in this situation will be to transfer the assets or your estate to your trust. After the transfer, the trustee will start distributing these assets to beneficiaries according to the terms of the trust.
In a situation where the beneficiaries are too young, the trustee may continue managing the trust until the minors become adults and can manage the assets on their own. If the beneficiaries are young adults or people who are not responsible with money, the trust terms may include instructions about limiting the amount of money they are allotted every month and so on.
Florida Role of an Executor
The executor is the one who pours the property over in the Pour-Over Will into the trust. In a situation where there is a traditional Will, it is the responsibility of the executor to distribute the assets, pay creditors, and manage the estate during the probate process. In most cases, the amount of wealth that the executor transfers to the trust according to the terms of a Pour–Over Will is actually small. It's always important to speak with an expert if you're concerned with the execution of your will - contact us today.