What is a testamentary trust?

A testamentary trust is an estate planning tool used in Washington state. It is a type of trust that is created and activated upon the death of the trustmaker. Testamentary trusts are created by including a trust provision in the trustmaker’s will. The trustmaker can designate beneficiaries to receive the property held in the trust, place restrictions on how the trust’s funds can be used, and provide instructions for the trust’s administration. The trustmaker can set up the testamentary trust to take effect either immediately upon their death or to take effect at a later date. This allows the trustmaker to provide for the beneficiaries’ financial future while they are still alive. One example of this is if the trustmaker has a disabled child and wants to provide for them after they pass away. They may set up the trust to have funds released to the child upon their death. The assets placed in the testamentary trust are generally managed and administered by a trustee. The trustmaker can choose to have a professional trustee, such as a bank or other financial institution, or they can select a trusted family member or friend to act as the trustee. The trustee is responsible for managing the trust’s assets and making sure that the trust is managed in accordance with the trustmaker’s instructions. Testamentary trusts can be used to provide for beneficiaries upon the death of the trustmaker and can be tailored to the trustmaker’s wishes. These trusts are an important part of estate planning in Washington and should be considered when creating an estate plan.

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What is a testamentary trust?

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