What is the term for the language that directs that the residuary estate be added to a trust under a trust agreement?

What is the term for the language that directs that the residuary estate be added to a trust under a trust agreement?

• A. A "pour over" provision
• B. A pecuniary bequest
• C. A specific bequest
• D. A power of appointment

Answer: (A)

A pour-over provision is language in a will or trust document that directs that the residuary estate be added to a trust established under a trust agreement. It ensures everything that remains after all specific gifts are made passes into the trust, so the trust terms govern how those assets are managed and distributed rather than going outright to individuals. This helps centralize control, facilitates ongoing management, and can simplify administration by funding the trust with the remainder of the estate. Other types described refer to different transfer schemes: a pecuniary bequest is a fixed cash amount to a beneficiary, a specific bequest is a particular item or piece of property to a beneficiary, and a power of appointment is the authority given to someone to designate who will receive property. None of these accomplishes directing the residuary assets into a trust in the way a pour-over provision does.

A pour-over provision is language in a will or trust document that directs that the residuary estate be added to a trust established under a trust agreement. It ensures everything that remains after all specific gifts are made passes into the trust, so the trust terms govern how those assets are managed and distributed rather than going outright to individuals. This helps centralize control, facilitates ongoing management, and can simplify administration by funding the trust with the remainder of the estate.

Other types described refer to different transfer schemes: a pecuniary bequest is a fixed cash amount to a beneficiary, a specific bequest is a particular item or piece of property to a beneficiary, and a power of appointment is the authority given to someone to designate who will receive property. None of these accomplishes directing the residuary assets into a trust in the way a pour-over provision does.