What is a testamentary trust?

A testamentary trust is a trust created and funded through a will. It is a type of trust that comes into existence after the death of the person who created the trust. This type of trust is usually created to provide for beneficiaries who may not be old enough, or financially responsible enough, to directly manage their assets, usually minor children. In Arizona, for a testamentary trust to be valid, it must comply with certain legal criteria. Generally, the trust should include language to indicate that it is created under the will, the creator’s intent to benefit a designated beneficiary, the appointment of a trustee to manage the trust, and the conditions that will govern the trust. In some cases, when the person creating the trust dies, the designated trustee will need to provide a surety bond or other form of security to serve as protection for the trust’s beneficiaries. If the testamentary trust complies with all of the legal requirements, the assets in the trust will be held in the trust until the expiration of the trust or the beneficiary reaches the age of majority.

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What is a testamentary trust?

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