What is a testamentary trust?

A testamentary trust is a type of trust that is established with language in a will. The will contains specific instructions on how to manage, protect, and distribute assets after the death of the person who created the trust. This type of trust is popular because it is relatively easy to create and administer. In Washington, a testamentary trust is enforced by the court and managed by a trustee. The trustee is selected by the person who created the trust and is responsible for following the instructions in the will. This can include investments, property management, and tax management. The trustee is responsible for ensuring that the assets are distributed according to the terms of the trust. The testamentary trust is also a great way to avoid probate. The trust does not go through the probate process and the assets can go directly to the beneficiaries. This can save time and money, as it eliminates the need for the court to become involved. In addition, a testamentary trust can provide tax benefits to the beneficiaries, as the trust can be structured in a way that minimizes the amount of taxes they have to pay. This can be especially helpful for large estates or where there is a large amount of money to be distributed. Overall, a testamentary trust is a great way to protect, manage, and distribute assets in an effective and tax-efficient manner. Those in Washington who have created a will should consider researching testamentary trusts to see if they are beneficial for their situation.

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What is a testamentary trust?

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