Who Should Be Your Inheritors?

If you’ve thought about estate planning and have contemplated when and how to distribute your assets to your heirs, read on. You probably imagine that this process will entail a series of trade-offs to prevent emotion-laden family problems. However, when you focus on numbers, you're dealing with objective and straightforward facts.

But, you are in murkier waters when considering who should inherit your wealth, and you understand that emotions will most likely factor into those decisions. The truth is, there is no correct answer to how to distribute your estate. But here are some questions that will help frame your thinking:

  • How much would you like to leave to charity and how much to your family?
  • Will you divide your assets equally among your heirs, or on some other basis, like need or good behavior?
  • What form does your estate take? Is it cash, securities or some other assets? Do you want to give these outright or leave them in a trust?
  • Can the heirs you chose to handle the responsibility of managing their own finances, or will they need help?
  • If you use a trust, will there be provisions, what will they be and whom will you designate as the trustee?

Maybe we should take a step back and clarify what exactly an heir is. An heir is a relation who potentially is entitled to money or property after you die, such as a spouse or child. Laws in each state outline the exact order in which heirs inherit property, but the list stops at a certain point. Not every heir automatically inherits.

The term "heir" is often used when someone dies without a will. When that happens, the estate administrator tries to find who rightfully inherits the property.

A "beneficiary" is a person or an organization who receives money or property by being specifically named in your will or trust. Beneficiaries can include charities, descendants or close friends, and even places of worship.

If you leave a will, beneficiaries often have more rights to whatever assets remain after probate. If you don’t leave a will, the assets go to the first heir in line, and the process continues until a living blood relative is found. Keep in mind that rules may vary depending on the jurisdiction.

Trusts can help ensure the people you want to get your assets, in the form you want. Ensuring the transfer of your hard-earned assets to your heirs is a crucial part of a well-thought-out estate plan. Although it may be uncomfortable to have a conversation like this with your spouse, your children, and other possible heirs, it will enable them to ask questions and clarify what your exact wishes are. While the estate planning talk deals with sensitive issues, it will mean a smoother transition for your heirs after your death.

Get started with your estate plan.

Frequently Asked Questions About Pour-Over Wills

Does a pour-over will avoid probate?

No. Assets passing under a pour-over will generally require probate before they reach the trust. Assets already properly held in a living trust generally avoid probate. Other assets may pass outside probate through valid beneficiary designations or survivorship ownership.

Do I need a pour-over will if I already have a living trust?

A companion pour-over will is generally recommended. It provides instructions for covered probate assets left outside your trust and can name an executor and nominate guardians for minor children.

Can I name guardians in a pour-over will?

Yes. A pour-over will can nominate guardians for minor children. Court appointment and Ohio law still apply; the nomination does not automatically override a surviving parent's rights or every other consideration.

What happens if I have a trust but no pour-over will?

Assets already in the trust continue to follow its terms. Property outside it follows any effective beneficiary designations, ownership arrangements, or other will provisions. Probate property with no effective will provision may pass under Ohio intestacy law instead of your trust instructions.

Does a pour-over will override beneficiary designations?

Generally, no. A valid beneficiary designation on an account or insurance policy usually controls that asset's transfer. Review beneficiary designations alongside your will and trust so the arrangements support your overall plan.

Will a pour-over will reduce my taxes?

Not by itself. A pour-over will directs covered property into a trust. Tax consequences depend on the assets, trust provisions, beneficiaries, and applicable law. It should not be treated as an automatic tax-saving tool.

Can I rely on a pour-over will instead of funding my trust?

That is generally not a good substitute. Assets left to pass through the will may require probate, adding administration before the trust can receive them. Funding appropriate assets during your lifetime helps the trust perform its intended role.

What if I revoke or replace my living trust?

Have your pour-over will reviewed at the same time. Under Ohio Revised Code Section 2107.63, termination or complete revocation of the receiving trust before death invalidates the gift to its trustee under that provision. Your attorney can coordinate replacement documents and backup instructions.

Make Sure Your Will and Trust Work Together

A trust agreement, asset ownership, and beneficiary designations all affect how property passes after death. A pour-over will helps address gaps, but the documents need to work together.

Charles Bendig Law helps Ohio individuals and families with wills, living trusts, and probate matters.

To discuss creating a trust-based estate plan or reviewing an existing one, contact attorney Chuck Bendig or call (614) 878-7777.

Chuck Bendig, Esq

I'm Chuck Bendig,

"For 40+ years, I've served Ohio residents. My private practice spans family law, estate planning, and personal injury cases. My commitment is rooted in genuine care for the individuals I serve."