What is a testamentary trust?

A testamentary trust is a type of trust that is established by a person during his or her lifetime, but only takes effect at their death. It is a tool that is used to manage, protect, and distribute the assets of an estate according to the decedent’s plan. A testamentary trust is typically outlined in a person’s will or other estate planning documents. The trust is funded after the decedent’s death with assets that are transferred according to the terms of the trust. The trust may provide for assets to be distributed to beneficiaries over a period of time, or in a lump sum. A testamentary trust must be administered according to the rules of trust law in the state of Virginia. The trustor (the person who made the trust) will appoint a trustee to manage the assets in the trust and the trustor’s wishes are followed in order to distribute the assets according to the terms of the trust. The trustor can also include provisions in the trust to ensure that assets will not be subject to probate, which can be a lengthy and expensive process. This can ensure that assets are managed and distributed quickly and efficiently. Testamentary trusts are a popular tool used to protect assets and ensure that a person’s wishes are followed after their death. They can also be used to protect assets from creditors, provide for a disabled individual, and provide for a minor child.

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