Clarifying Your Will
Understanding the Difference Between a Will and a Trust
If you've ever thought, "I have a will, so that should keep me out of probate court, right?" — you’re not alone. Many people believe that having a will means they can avoid probate court. Actually, this is one of the most common misconceptions about estate planning. A will is designed specifically for the probate process.
Think of a will as an instruction manual for the judge and your executor. It outlines what you want to happen to your assets after you pass away. While this can ensure your wishes are followed, it still requires the involvement of the probate court.
So, if avoiding probate court is your goal, a will isn't the solution. What you need instead is a trust.
Why Would You Still Need a Will if You Have a Trust?
Once you have a trust, you might wonder why you would still need a will. Most people typically don’t need a traditional will anymore. However, estate planning attorneys often draft what’s called a pour-over will alongside the trust.
A pour-over will serve as a safety net. Its purpose is to catch any assets that weren’t placed in the trust before you passed away. For example, if you forgot to transfer a particular asset or didn’t have it routed to the trust, the pour-over will directs those assets back into the trust. This helps ensure that your estate plan is complete and consistent, even if you miss a step along the way.
However, it is worth noting that assets passing through a pour-over will may still go through probate before reaching your trust. While the pour-over will is not an all-encompassing way to avoid probate, it does indicate to the court your wishes regarding an asset outside the trust. This is another reason why funding your trust during your lifetime is an important part of the process.
Why Do You Need a Will if You Have Minor Children?
A will provides the opportunity to choose who cares for minor children. A will can include a nomination of guardian clause which expresses who you would like to become responsible for your children after you pass. To learn more about adding a nomination of guardian clause to your will, visit this article.
Key Takeaways
A will is designed for the probate process and serves as instructions for the court.
If you want to avoid probate, you need a trust.
A pour-over will acts as a backup to ensure all assets eventually make it into your trust, offering additional protection.
Understanding the differences between these estate planning tools can help you make informed decisions about protecting your assets and ensuring your wishes are honored.
Learn More:
To learn 80% of what you need to know about estate planning in less than 30 minutes, check out myfull-length video. It’s a quick and comprehensive guide to help you understand the basics and start taking steps to secure your future.
If you’re interested in learning more about how a pour-over will fits into your overall estate plan, or would like me to review or create a trust for you, then click the link below to schedule a call with me today - I’m always happy to help!
Explore My Answers to Frequently-Asked Estate Planning Questions:
1. How do I avoid probate court?
2. What are the 4 core documents of estate planning?
3. What Are the Steps Involved in the Estate Planning Process?
4. What happens if I have multiple minor children at the time of my death?
