What is a testamentary trust?

A testamentary trust is an estate planning tool used in California to manage assets or provide financial benefits and protection to beneficiaries. It is a trust created through the terms of a Last Will and Testament of the deceased individual, or the testator. When the testator passes away, the terms of the trust become active and the trustee is responsible for carrying them out. The trustee chosen in the Last Will and Testament is charged with managing the trust according to the testator’s wishes. This includes managing the trust’s assets, distributing them to the beneficiaries, and ensuring that the terms of the trust are fulfilled. The trustee also has a fiduciary responsibility to ensure that the trust’s assets are managed in the best interests of the beneficiaries. A testamentary trust can provide many benefits to the beneficiary. It allows the testator to determine who receives their assets and how they should receive them. It also provides protection to the beneficiary by providing specific instructions for trustees to follow, which limits their ability to use trust assets for their own benefit. Furthermore, a testamentary trust can provide the beneficiary with tax advantages, such as deferring or reducing taxes on income generated by the trust.

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What is a testamentary trust?

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