What is a testamentary trust and how does it work?

A testamentary trust is a type of trust that is created through a will. It establishes a trust that is created after death and is used to manage the deceased person’s assets. The deceased person’s will can outline how the trust is to be administered and who will be the beneficiaries of the trust. The trust document will explain how the trust will be managed, what type of investments and distributions it will allow, and who will have access to the assets. In Hawaii, testamentary trusts can be used to provide financial security for minor children, to ensure that property is maintained or protected from creditors, or to provide for a spouse or other family members upon the death of the person who created the trust. Testamentary trusts in Hawaii can also include the ability to make charitable donations, limit the access of the beneficiaries, or delay the access to the funds by the beneficiaries until a specific age is reached. The trust is created by the executor of the will, who is appointed by the court and is responsible for transferring the property to the trust. The executor will follow the terms of the will and the trust document in order to manage the trust.

Related FAQs

How do I set up an estate plan?
What is a gifting program and how does it work?
What should I do if I suspect an invalid will?
How do I transfer a business after I die?
What are the benefits of establishing a family limited partnership?
What is an advance health care directive?
What is a trust protector and how does it work?
How can I plan for the future care of my minor children?
How do I make sure my digital assets are taken care of after my death?
What is an irrevocable trust?

What is a testamentary trust and how does it work?

Related FAQs

Related Blog Posts