A Pour-Over Clause is a provision commonly found in a will that directs assets not specifically mentioned in the will to be transferred into a trust upon the individual’s death. This clause ensures that any assets acquired or not explicitly dealt with in the will are poured over into an existing trust, which is usually designed to manage and distribute the deceased’s estate according to their wishes.
Typically, the Pour-Over Clause works in conjunction with a revocable living trust. When an individual creates this type of trust, they may transfer certain assets into it during their lifetime. However, they might also acquire additional assets that are not transferred before their death. The Pour-Over Clause in the will serves as a safety net, capturing these remaining assets and funneling them into the trust, thus following the distribution plan outlined in that trust.
For example, if a person has a living trust that specifies how their assets will be distributed among their children, but they fail to transfer their newly purchased property into that trust during their lifetime, the Pour-Over Clause in their will would ensure that this property is still included in the trust’s terms after their passing.
In Texas, particularly in the Houston area, this clause can be particularly beneficial in estate planning, as it simplifies the probate process by minimizing the number of assets that need to go through court proceedings. Thus, a Pour-Over Clause can lead to a more efficient and organized transfer of assets, aligning with the individual’s overall estate planning goals.
« Back to Glossary Index