What is a testamentary trust?

A testamentary trust is a trust created through a will and becomes effective upon the death of the person creating the trust (also known as the settlor or the testator). In Pennsylvania, testamentary trusts are governed by the provisions of the Pennsylvania Trust Code. A testamentary trust is a legal tool that enables the creator of the trust to pass his or her assets onto a third party, known as the trustee, while they are still alive. The trustee then becomes responsible for managing the assets and distributing them according to the instructions of the settlor. For example, the settlor may set up a trust and leave instructions for how the trustee should manage the assets and distribute them to beneficiaries upon the settlor’s passing. In addition to the assets held in the trust, the settlor may also designate beneficiaries to receive a portion of the assets. A testamentary trust is a powerful tool that allows the settlor to choose who will receive their assets, when they will receive them, and in what amount. This gives the settlor control over their estate after their death. Testamentary trusts can be complex documents, so it is important to work with an experienced attorney when creating one. An attorney can help to ensure that the trust is prepared correctly and that all of the settlor’s wishes are carried out.

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What is a testamentary trust?

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