Testamentary Trust

A testamentary trust is a trust that is established by a person’s will and comes into effect after the person’s death. The trust is funded with assets from the person’s estate and managed by a trustee who is responsible for distributing the assets to the beneficiaries according to the terms of the trust.

The trustee is often a professional or trusted family member who is responsible for managing the assets and ensuring that they are distributed according to the wishes of the deceased.

Testamentary trusts are often used to provide for the long-term care of a spouse or other family member, to provide for the education of children or grandchildren, or to protect the assets of beneficiaries who may be unable to manage their finances.

Because the trust is established by the person’s will, the terms of the trust can be customized to the individual’s wishes and can be updated as circumstances change. However, testamentary trusts are subject to probate, which can be a lengthy and expensive process and may not provide the same level of privacy as other types of trusts.