What is a testamentary trust?

A testamentary trust is a type of trust that is created through a will and takes effect when the individual who created the will (the testator) passes away. In Illinois, a testamentary trust is a legally binding document that outlines how the testator’s assets should be managed and distributed. The trust is responsible for managing the assets according to the instructions in the will. The trust will also pay any debts or taxes that are owed by the testator. Additionally, the trust will pay distributions to the beneficiaries that are named in the will. The testamentary trust can also be used for charitable purposes and can be set up to provide financial support to a family member for a certain amount of time. The testamentary trust can also be used to give certain protections to the beneficiaries. This could include protecting them from creditors who may be attempting to collect a debt from the testator or from the trust itself. It can also protect the assets from being taken or mismanaged. Ultimately, a testamentary trust is an important element of estate planning in Illinois and can help to ensure that the testator’s wishes in regards to their assets are followed.

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What is a testamentary trust?

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