Which mechanism allows assets to pass to a trust via a will?

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Multiple Choice

Which mechanism allows assets to pass to a trust via a will?

This question tests how a will can fund a trust at death. A pour-over will directs assets that aren’t already placed into a trust during life to pass into a trust named in the will. In essence, the will “pour[s] over” those assets into a testamentary trust, which then governs how the money and property are managed and distributed under its terms after death. The other options don’t fit this mechanism. A Totten trust is a payable-on-death designation for a bank account and passes assets directly to a beneficiary, not into a trust created by the will. An inter vivos trust is created and funded during the grantor’s lifetime, not funded by the will at death. A charitable trust is set up for charitable purposes and isn’t specifically about transferring assets to a trust via a will.

This question tests how a will can fund a trust at death. A pour-over will directs assets that aren’t already placed into a trust during life to pass into a trust named in the will. In essence, the will “pour[s] over” those assets into a testamentary trust, which then governs how the money and property are managed and distributed under its terms after death.

The other options don’t fit this mechanism. A Totten trust is a payable-on-death designation for a bank account and passes assets directly to a beneficiary, not into a trust created by the will. An inter vivos trust is created and funded during the grantor’s lifetime, not funded by the will at death. A charitable trust is set up for charitable purposes and isn’t specifically about transferring assets to a trust via a will.

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