What is a testamentary trust and how does it work?

A testamentary trust is a type of trust that is created by the terms of a will. It is used to hold and manage assets for the benefit of the beneficiaries after the person who created the will has died. In Nebraska, these trusts are legal documents which must be filed with the court before they are valid. The terms of the trust are outlined in the will and typically include instructions on how the property should be managed, who has the authority to manage the assets, and who will receive the proceeds from the trust. The terms of the trust can be as specific or as general as the creator wishes but the trust must be in writing in order to be legally valid. Once the trust is in place, the assets in the trust will no longer be owned by the person who created the will. The assets legally belong to the trust, and the trustees are responsible for managing the trust in accordance with the instructions in the will. The trustees are legally obligated to manage the trust in the best interests of the beneficiaries, and they must provide regular reports to the beneficiaries of all activities related to the trust. The proceeds from the trust are generally distributed according to the instructions in the will, unless otherwise provided for in the trust document. This includes any income or capital gains from investments made within the trust, as well as any distributions made to the beneficiaries.

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What is a testamentary trust and how does it work?

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