What is a testamentary trust and how does it work?

A testamentary trust is a type of trust created in a will in California that can be used to manage assets and provide for beneficiaries after the original owner (the testator) dies. This type of trust can either be created in full or be funded by the will. The testamentary trust is then managed by a trustee. This trustee manages the assets and is usually appointed by the testator in their will. The trustee has a legal obligation to ensure that the assets of the trust are managed responsibly, such as by investing them or paying out money to the specified beneficiaries in accordance with the testator’s wishes. The testamentary trust can only be triggered when the testator passes away, and assets are only available to the beneficiaries after this point. The trust is set up so that the assets are protected from the claims of creditors, meaning that creditors cannot make any claims against the trusts’ assets. Furthermore, the trust can be used to provide for both specific and general beneficiaries. Finally, it is important to note that the testamentary trust is governed by state law and can be limited by certain federal rules. Therefore, it is important to consult with a qualified estate planning lawyer to make sure that the trust is properly established and administered.

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What is a testamentary trust and how does it work?

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