Pour-Over Wills Attorneys in Tennessee

When it comes to estate planning, there are tools available to make sure your assets are distributed according to your wishes upon your passing. One such tool is the pour-over will, which plays a critical role in the smooth transition of assets. 

Located in Nashville, Tennessee, Brazil Clark, PLLC helps clients with the many aspects involved in pour-over wills in Nashville, Tennessee. This includes helping clients understand the purpose of pour-over wills, how they function, and the laws that individuals in Tennessee should be aware of when incorporating them into their estate planning strategy.

The attorneys at Brazil Clark, PLLC serve clients in Nashville, Tennessee, and Rutherford County. Call today for a free consultation.

What Are Pour-Over Wills?

A pour-over will is a type of will that directs the transfer of assets into a living trust upon the testator's death. The term "pour-over" refers to the act of transferring the decedent's assets into an existing trust. 

The primary function of pour-over wills in Nashville, Tennessee, is to make sure that any assets not already placed into the trust during the individual's lifetime are included and distributed according to the trust's terms after death. In essence, it acts as a safety net for assets that may have been inadvertently left out of the trust during the person's life.

This type of will is typically used in conjunction with a revocable living trust. While a trust can hold most of a person’s assets during their lifetime, a pour-over will makes sure that any assets not yet transferred to the trust are included after death.

Pour-Over Wills in Tennessee

Additionally, Tennessee law recognizes pour-over wills and the importance they serve in the estate planning process. By using a pour-over will in combination with a living trust, Tennessee residents can maintain a degree of flexibility in their estate planning and make sure that all assets are handled as desired, even if they forget to include them in the trust while alive.

Tennessee is a revocable trust-friendly state, meaning that it allows individuals to create and modify living trusts throughout their lives, without needing to go through a court process. This creates a natural synergy with pour-over wills, as they serve as a catch-all mechanism for assets not otherwise handled by the trust.

One of the main advantages of using pour-over wills in Nashville, Tennessee, is that they simplify the process of asset distribution. With the will, the individual is simply "pouring" the remaining assets into their living trust, where the assets can be distributed in accordance with the trust’s provisions. 

Without a pour-over will, any assets left out of trust would go through the probate process, which could involve delays, additional costs, and public disclosure of the deceased's assets.

How Pour-Over Wills Work in Practice

The process of pour-over wills in Nashville, Tennessee, is fairly straightforward. Here’s an outline of how it typically works:

1. Creation of a revocable living trust: The first step in creating a pour-over will is the establishment of a living trust. A living trust is a legal entity that holds title to assets during the person’s lifetime. It allows for the management and distribution of assets to beneficiaries after death, without going through probate.

2. Transfer of assets into the trust: During the individual’s life, assets (such as real estate, bank accounts, and other property) are transferred into the trust. This is typically done through a formal process of re-titling assets in the name of the trust.

3. Drafting the pour-over will: The individual drafts a pour-over will, which explicitly states that any remaining assets that haven’t been transferred into the trust during their lifetime should be transferred into the trust upon their death.

4. Probate and transfer of assets: Upon the death of the individual, the pour-over will is submitted for probate, as is required with any will in Tennessee. The court will verify the will’s validity, and any assets not already in the trust will be transferred to the trust by the personal representative (executor).

5. Distribution by the trust: Once the assets are transferred into the trust, they’re distributed according to the terms of the trust. This typically involves the successor trustee managing the distribution without the need for court intervention.

The attorneys at Brazil Clark, PLLC can guide you through the process.

The Distinction Between Executor and Trustee

Furthermore, it’s essential to understand the distinction between the executor and the trustee in the context of a pour-over will. While both roles are involved in the administration of a decedent's estate, they serve different distinct functions:

• Executor: The executor is the person appointed in the pour-over will to handle the probate process. In Tennessee, the executor is responsible for making sure that the decedent’s will is valid and properly executed. The executor will also make sure that any assets not already in the trust are legally transferred into the trust during the probate process. Once the assets are transferred, the executor’s role typically concludes.

• Trustee: The trustee, on the other hand, is the person or entity responsible for managing and distributing the assets in the living trust. If the pour-over will is executed properly, the trustee assumes responsibility for the decedent’s assets once they’re transferred into the trust. The trustee makes sure that the terms of the trust are followed, including the distribution of assets to beneficiaries, as specified in the trust agreement.

While the same person can fill both roles, these positions have different responsibilities. The executor handles the probate process, while the trustee manages the trust’s assets according to its terms.

The Advantages of a Pour-Over Will

Moreover, pour-over wills in Nashville, Tennessee, offer several advantages that make them a popular estate planning tool in Tennessee. These include:

• Minimized risk of omitted assets: Assets that the decedent may have overlooked during their lifetime are still transferred into the trust after death, meaning that all assets are distributed as intended.

• Avoiding probate for trust assets: The primary advantage of a living trust, which is coupled with a pour-over will, is the ability to avoid probate for assets held within the trust. This is especially significant in Tennessee, where probate can be time-consuming and costly. Assets that are properly transferred into the trust are typically not subject to probate, meaning they can be distributed to beneficiaries much more quickly and privately.

• Privacy: Wills and probate proceedings are a matter of public record, meaning that anyone can access the details of the estate, including a list of the decedent’s assets and beneficiaries. In contrast, assets held in a living trust aren’t subject to public disclosure. A pour-over will make sure that the majority of the estate is handled privately through the trust.

• Simplified estate administration: Since a pour-over will directs the transfer of assets into the living trust, which is already set up to handle distributions, the executor and trustee can focus on executing the terms of the trust rather than distributing individual assets through probate.

• Flexibility and control: A living trust provides greater flexibility and control over how assets are distributed, particularly when it comes to specific instructions, such as staggered distributions for minor children or setting up charitable trusts. The pour-over will acts as a mechanism for making sure that all assets are captured and handled by the trust.

Contact Brazil Clark, PLLC to see how a pour-over will can benefit you in your estate plan.

Potential Drawbacks of Pour-Over Wills

While pour-over wills in Nashville, Tennessee, offer several benefits, they’re not without potential drawbacks. Some of the possible disadvantages to consider include:

• Probate requirement: Even though the pour-over will allows the majority of assets to pass outside of probate, the will itself must still go through the probate process. This can be costly and time-consuming, and the executor will need to manage this aspect of the estate administration.

• Delay in asset distribution: Although the pour-over will directs assets to the living trust, there may still be a delay in distributing those assets, as they must first be probated and transferred to the trust. This can cause a delay for beneficiaries, especially if the estate is large.

• Potential for oversights: If the living trust isn’t properly funded during the decedent's lifetime, and the pour-over will only directs the transfer of assets into the trust after death, there may still be some assets that don’t pass as intended. It’s crucial to make sure that the trust is regularly updated to reflect the person’s assets.

The attorneys at Brazil Law, PLLC will strive to help you understand the best options to include in your estate plan. The firm serves clients in Nashville, Tennessee, and Rutherford County.