What is a testamentary trust and how does it work?

A testamentary trust is a type of trust created in a will to provide for the care of beneficiaries when the testator (the person creating the will) passes away. This type of trust is often used to protect assets for a beneficiary or provide a secure source of income for a family. In Idaho, the testator must create the testamentary trust in their will by providing specific instructions to the executor on how the trust will be administered and managed. The executor is the person who is responsible for carrying out the testator’s wishes after their death. Once the will is validated, the trust is created. The trust funds will be transferred into the trust according to the instructions detailed in the will and will remain separate from the testator’s other assets. The trust is managed by the trustee, who is appointed by the testator in the will. The trustee will ensure that the assets are invested and managed according to the testator’s wishes. The trust will eventually be distributed to the beneficiaries of the trust. This distribution may occur when the beneficiaries reach a certain age or as determined by the testator in the will. Depending on the terms of the trust, the beneficiaries may be able to access the trust funds prior to reaching the age of majority (18 in Idaho), with the trustee’s consent. Overall, a testamentary trust is a useful tool for estate planning to ensure the wishes of the testator are carried out. It provides a secure way to manage and protect assets for beneficiaries over the long-term.

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What is a testamentary trust and how does it work?

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