The first example shows a provision for an individual child’s trust, and the second example shows a will provision for a children’s pot trust--a trust for more than one child. A testamentary trust is a trust that is specified in a person’s will, and that is handled upon that person’s death. A testamentary trust will, often referred to as a will trust, is a will that creates a trust upon the death of the testator. A Testamentary Trust Will is a type of Will that establishes a Trust or Trusts upon the death of the Willmaker. The terms of the trust are detailed in the will. Such a trust ensures that, if property is left to a beneficiary who happens to be younger than a certain age upon your death, that property is not distributed immediately, but instead held in trust by a designated trustee. This kind of Will is designed to protect the Willmaker's assets because they belong to the beneficiaries’ Trust rather than the individual. A testamentary trust will needs to provide explicit instructions for the creation of a trust if you want maximum protection for your beneficiaries and their inheritance. Your Will instructs your executor to set up the trust upon your death. This allows flexibility for how capital and income generated by those assets is distributed. A testamentary trust is a vital part of estate planning and will be put into effect once a person is deceased. Testamentary Trusts. Although testamentary trusts are created during the writing of a will, they do not come into being until the death of the grantor. A settlor's property is therefore transferred into the trust when the settlor dies. Testamentary trusts are created by a settlor's will. In this article, we will go over what a testamentary trust is and how it works. Testamentary trusts differ from living trusts, which go into effect during the grantor's life. Testamentary Trust When minor children are involved, the will may contain provisions to create a testamentary trust. A testamentary trust will, or will trust, is an individual trust that a grantor (the person who created the trust) writes into their will. Testamentary trusts are trusts set up by your Last Will and Testament. The trusts wouldn't be created until after the death of the person making the will. Learn more about Wills. Testamentary trusts are a type of trust that is created through your Will after you pass away. Testamentary trusts allow for a substantial level of control over distribution of assets to beneficiaries and … The Basics. To create a testamentary trust in a will, the settlor must designate a trustee and specify the beneficiaries. A trust, by definition, is an arrangement where property or assets are managed by one person for the benefit of another person. As mentioned above, a testamentary trust comes into effect not until the settlor dies. 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