Living Trust / Pour-Over Will

A living trust is a legal arrangement where a person places their assets into a trust during their lifetime, which can be altered or revoked. A pour-over will ensures that any assets not already in the trust at the time of death are transferred into the trust, allowing for easier management and distribution of the estate without going through the lengthy probate process.

Jane creates a revocable living trust and transfers most of her assets into it, but she forgets to include her car. Upon her death, her pour-over will directs that the car be transferred into the trust. The trustee can then manage and distribute all of Jane's assets, including the car, according to the trust terms without a full probate process.

Pour it over: assets flow into the trust for smooth sailing after death.

Exams may present scenarios where students overlook assets that are not explicitly included in the trust, leading to confusion about the role of the pour-over will. Students might also misinterpret the differences between a living trust and a pour-over will.

Questions often involve fact patterns where a decedent has both a living trust and a pour-over will, testing the candidate's understanding of how assets are handled in probate versus trust administration.