What is a testamentary trust and how does it work?

A testamentary trust is an estate planning tool that is created by a person as part of their will. This type of trust is used to manage and distribute a person’s assets after death. The person creating the trust, called the “testator,” sets up the trust and determines how it will be administered. The testator can choose who will be in charge of administering and managing the trust, called a trustee. The trustee needs to follow the rules set forth in the trust document. They are responsible for managing the assets of the trust, such as investments and distributions of inheritance funds. The trust may also have specific restrictions that the trustee must follow. The beneficiaries of the trust are those people who will receive the benefits of the trust. This can include family members, friends, or organizations. The testator decides how the assets will be distributed among the beneficiaries. The trustee is responsible for making sure the assets are allocated according to the testator’s wishes. In Maryland, a testamentary trust must be created according to state law. The testator must have a certain level of mental capacity and any changes to the trust must be in writing and signed by the testator and witnesses. Additionally, the trust must be executed in accordance with the laws of the state of Maryland.

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What is a testamentary trust and how does it work?

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