What is a testamentary trust?

A testamentary trust is a type of trust created by a person’s last will and testament after they die. In California, the trust is created after the court approves probating the deceased’s estate. Testamentary trusts can be used for a variety of purposes. The most common purpose is to provide for the deceased’s minor children or other family members who need protection for their inheritance. A testamentary trust is a type of trust agreement in which a person’s assets are placed into a trust to be managed, invested, and distributed according to the terms of the trust agreement. The trust is usually created so that the person’s assets are managed and distributed in the best interest of the beneficiary, while avoiding probate court taxes and preserving the privacy of the deceased’s estate. The trust creator, also known as the trustor, will generally have some control over how the trust assets are managed. For example, the trustor may specify that the trust assets be invested in specific stocks, bonds, or mutual funds. The trustor can also name a trustee, who will be responsible for carrying out the trustor’s wishes regarding the trust assets. The trust assets may also be used to provide for long-term care, create a life insurance policy, or pay for the beneficiary’s college education. Any money remaining in the trust after the beneficiary’s death can be distributed according to the trustor’s wishes. A testamentary trust is an important tool for providing for the financial needs of one’s family after death.

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What is a testamentary trust?

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