Testamentary Trust Will

Generally, a testamentary trust will is a last will and testament (“will”) which establishes a trust.  A testamentary trust is a type of estate planning mechanism which generally allows for the distribution of substantial assets following the death of the testator. The testator is the person who made the will.  The testamentary trust actually comes into creation only upon the testator’s death.  In addition, the testamentary trust usually utilizes a trustee, who is a person appointed by the testator to oversee and administer the trust.  This trustee remains responsible for the oversight of the trust until the trust ceases to exist; this can occur by the occurrence of a certain event, such as the beneficiaries attain a certain age and the assets automatically vest in the beneficiaries. 

Appointing a Trustee

Occasionally, a trustee is not appointed.  In this instance, the court must appoint a trustee. This trustee may be either an independent court approved individual or a friend or family member of the testator.  When this occurs, the court will review and monitor the actions of the trustee in order to ensure that the trustee is acting in good faith and for the benefit of the trust beneficiaries.

Frequently, testamentary trusts are used in order to provide for minors or disabled persons who will stand to inherit sizable assets.  In addition, testamentary trusts are used because of the ease in which to establish the trust and low cost involved in the process.

Avoiding Probate

Moreover, the use of the trust will avoid the probate process, which is the formal filing of the will and administration of the will property.  Furthermore, the avoidance of probate also saves in attorney’s fees and court costs.  Whether a testamentary trust is suitable for you depends upon your particular wishes and circumstances.  An experienced estate planning attorney can assist you in ascertaining the most appropriate estate plan, which may or may not include the use of a testamentary trust.