Pourover Trusts Law and Legal Definition
A pourover trust is a revocable trust that is structured to receive and dispose of assets at the settlor’s death. The revocable living trust can be a "shell" during the grantor's lifetime. That is, the trust can be inactive during life. If the trust did not terminate at the grantor's death, the trust may receive assets passing under the will (after probate) and from life insurance policies. Assets may be directed to the trust by the settlor’s will, which is called a pourover will, or by beneficiary designation for non-probate assets.
This type of trust is similar to a testamentary trust in that it is designed to dispose of the assets at the settlor’s death. However; a pourover trust is a separate document. A pourover trust can be advantageous since it is administered by a trustee without court supervision. In addition, it is a private instrument, unlike a testamentary trust, which is part of public record.
