What is a testamentary trust and how does it work?

A testamentary trust is a type of trust established in a will, and it becomes operational after the will-maker passes away. This type of trust is commonly used in estate planning as a way to protect and manage assets for the benefit of the will-maker’s beneficiaries. A testamentary trust is established in a will, and it determines how the will-maker’s assets will be managed and disposed of after they pass away. The trustee, who is appointed in the will, is the person responsible for administering the trust and carrying out the wishes of the will-maker. The trustee can be an individual, a bank, or a legal entity, such as a trust company. Once the trust is established, the trustee can begin to manage the assets within the trust. This includes investing the money, paying taxes and bills, distributing money to the beneficiaries, and making decisions regarding the trust, such as making investments or selling assets. The testamentary trust can also include provisions that limit the beneficiaries’ access to the trust’s assets, such as only allowing access when they reach a certain age, or limiting the amount they can withdraw at a given time. This allows the will-maker to ensure their assets are managed in a way that will benefit their beneficiaries. Under Washington State law, a testamentary trust must meet certain requirements to be valid. These requirements include a valid will, a competent trustee, and clear instructions regarding how the assets should be managed.

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