What is the Difference Between a Will, a Living Will, and a Pour-Over Will?

Even though the names of these three legal papers are identical, they differ greatly in terms of the objectives they assist you achieve when it comes to estate planning. 

A person's estate administration and asset distribution after death are specified in a WILL, which serves as a legal document. The person who makes the will is referred to as the Testator, and the person who administers the estate is referred to as the Executor. Family disputes can be avoided by designating the Executor and laying out "who gets what" in advance.

A LIVING WILL outlines a person's preferences for medical care, such as artificial life support, surgery, or other therapies for end-of-life situations or unrecoverable unconsciousness. An individual who has become incapacitated names a trusted person in a healthcare proxy to make medical choices on their behalf. 

A will that works with a trust is known as a POUR-OVER WILL. Instead of dictating how your property will be distributed after your death, a pour-over will specifies that assets not placed in your trust will be transferred to the trust when you die. It basically designates your trust as the beneficiary of any assets that aren't currently held in the trust.

What are the advantages of a pour-over will? Assets without specified beneficiary designations will transfer to your heirs in accordance with the laws of intestate succession if you fail to deposit your assets into your trust (a procedure known as "funding" the trust) and you don't have another will in place specifying where your assets should go. This means that the state will make decisions about "who gets what" based on pre-established standards. The rules set forth by the state for asset distribution probably won't correctly represent your preferences.

Your trust should be well funded, so you won't need a pour-over will. But knowing that you have a backup plan is comforting.