There are several supporting documents that must be drafted and signed along with the trust agreement.
Each one of these documents plays an important role depending on the facts and circumstances of the trust Grantor and his or her life.
- Pour Over Will - The first of the Documents in addition to the trust itself is the pour over will.
Many people mistakenly believe that if they have a Living Trust, they do not need a Will.
The pour over will gets its name from its primary function in the Living Trust project plan.
It acts as a safety net for any property not transferred by the Grantor during their lifetime.
It pours it over into the trust.
The pour over will also is where you name guardians for minor children.
The guardian nomination is done in the pour over will because this nomination needs to be filed in court.
One of the purposes of the Documents is to keep the terms of your property disposition private.
If the guardians are named in the trust agreement, the trust will have to be filed with the court in the event of a death.
This would defeat one of the reasons for creating the trust in the first place.
Look for Part 2 of this series discussing the Declaration of Trust and Power of Attorney as Living Trust Documents.