Suppose a wealthy California businessman is sitting in his lawyer’s office discussing how to structure his will. He recognizes that there are different factions in his family (he was married twice with children from both marriages). Though during his lifetime the animosity stayed under the rug, he has serious concerns that the animosity will percolate when he passes, especially when money will be at issue. Therefore, he is searching for a way that his children will not argue after his passing. The solution, his lawyer says, is creating a pour-over will.
Trusts, Wills, and Probate
A will and a trust are not the same. A will is an instrument that is drafted during the testator’s (person who passes) lifetime and is activated upon death, whereas a trust is an instrument that is in force during the trust creator’s lifetime. There is also a significant legal difference between the two: A will is subject to probate, which means that it must be approved in a California probate court; a trust is not subject to probate and therefore does not need court approval.
What is more, a pour-over will is only subject to probate if the assets subject to the will are valued at $150,000 or above. Wills valued at lesser amounts will pour immediately into the trust without the probate process.
For your trust and estates needs, contact the Bay-area firm of Melanie Tavare and get professional estate planning lawyer.
