What is a testamentary trust?
A testamentary trust is a type of trust that is created by a person’s last will and testament to benefit someone else. This type of trust allows the person’s assets to be held and managed in trust by a trustee for the benefit of another person. The person who creates the trust is known as the settlor, and the person who benefits from the trust is called the beneficiary. Inheritance law in Washington state states that a testamentary trust must be in writing and signed by the settlor, and it must meet all the requirements of the law in order to be considered valid. The trust must also name a trustee and provide detailed instructions on how the trust assets should be managed and distributed upon the settlor’s death. The trust assets can be used to provide financial support to the beneficiary and can also be used to pay the settlor’s debts. The settlor of a testamentary trust can also create a trust that provides for the care of minors or special needs beneficiaries, in which case the trust can be used to provide for the beneficiary’s medical care and education expenses. In this type of trust, the trustee has a duty to act for the best interest of the beneficiary, and must follow all the instructions in the trust document in order to do so. Overall, a testamentary trust is an important estate planning tool that allows the settlor to provide for the care and financial needs of another person, even after their death. By creating this type of trust, the settlor can provide for the person’s well-being and ensure that their wishes are carried out.
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