What is a testamentary trust and how does it work?

A testamentary trust is a type of trust created in a will or testament. It is an arrangement that allows someone to transfer assets from their estate to someone else - typically a family member or chosen beneficiaries - while ensuring that the assets are managed and distributed in accordance with the deceased individual’s wishes. In Nebraska, testamentary trusts are regulated by the Nebraska Uniform Trust Code and must be included in the deceased individual’s will or testament. When a testamentary trust is established, the assets are transferred into a trust that is managed by a trustee who is responsible for ensuring that the trust’s assets are managed and distributed in accordance with the instructions of the deceased individual. This includes managing the trust’s investments and making distributions of assets to the beneficiaries. The trustee is also responsible for filing the necessary tax forms and making sure the trust complies with all applicable laws and regulations. The main benefit of establishing a testamentary trust is that it allows the deceased individual’s assets to be managed and distributed according to the individual’s wishes after they have passed away. The will or testament can also specify conditions on how and when the beneficiaries can access the assets in the trust. In Nebraska, testamentary trusts can be set up to last for up to 360 years, though they typically have much shorter lifespans.

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What is a testamentary trust and how does it work?

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