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When creating an estate plan in Illinois, it’s important to understand the various tools available to ensure that your assets are distributed according to your wishes. One such tool is a pour-over will. While it may sound complex, a pour-over will plays an important role in ensuring your estate is handled properly.
What is a Pour-Over Will?
A pour-over will is a unique type of will that works in conjunction with a revocable living trust. The primary function of a pour-over will is to “pour over” assets into the trust after your death. Essentially, any assets that were not previously transferred to your trust during your lifetime will be directed into the trust upon your passing. This helps ensure that everything you own is included in the trust, and the management of your estate follows the terms outlined in the trust.
Why is a Pour-Over Will Important in Illinois Estate Planning?
In Illinois, like in most states, the probate process is the legal procedure through which a deceased person’s assets are distributed. While a living trust helps avoid probate for assets that are transferred to it during the individual’s lifetime, not all assets may be transferred or accounted for before death. This is where a pour-over will becomes crucial.
Without a pour-over will, any assets not placed in the trust will have to go through the probate process, which can delay the distribution of your assets and increase the costs associated with your estate administration. A pour-over will ensures that all assets are eventually placed into the trust, even if they were left out. This prevents the need for probate on those assets, streamlining the process and reducing costs for your loved ones.
How Does a Pour-Over Will Work in Illinois?
The process begins when the person creating the estate plan (the testator) creates both a living trust and a pour-over will. Assets are typically transferred into the trust during the person’s lifetime, but it’s not uncommon for certain assets to be overlooked or simply acquired after the trust was created. When the testator passes away, the pour-over will directs any remaining assets to the trust.
For example, let’s say you create a trust and transfer the majority of your assets into it. However, some assets like a new car, or personal items, might not be transferred into the trust before you pass away. When the pour-over will is executed after your death, those assets will “pour over” into the trust, and the trust’s terms will govern the distribution.
Benefits of a Pour-Over Will in Illinois
There are several benefits to incorporating a pour-over will in your estate plan:
- Simplified Distribution: By having all your assets in one trust, your estate plan becomes more organized. You can consolidate your personal assets, retirement accounts, real estate, and investments into the trust without having to create multiple documents for each asset.
- Avoiding Probate: While the assets that “pour over” may still go through probate initially, the overall goal is to have everything consolidated into the trust, which bypasses probate. This can save your heirs time and money.
- Peace of Mind: A pour-over will ensures that no asset is left behind. If anything was overlooked during your lifetime, it will be handled according to the terms of your trust, so you don’t need to worry about the distribution of specific assets.
- Privacy: Trusts generally offer more privacy than wills, which are public documents. Since the majority of your assets will be distributed through the trust, you can maintain privacy regarding your estate.
Is a Pour-Over Will Right for You?
In Illinois, a pour-over will is an essential estate planning tool for those who have a living trust. It ensures that all of your assets are included and distributed as per your wishes. Contact Bielski Chapman, LTD. today to discuss how a pour-over will can be a valuable addition to your estate planning strategy.