What is a testamentary trust?

A testamentary trust is a trust created by a will in North Carolina. It is a legal document which gives a person (the trustee) the authority to manage property or assets owned by another person (the settlor) after their death. Testamentary trusts can be used for a variety of purposes including providing for descendants and other beneficiaries, protecting assets from creditors, and avoiding transfer taxes. The settlor can also specify the terms of the trust, such as when the assets will be distributed, how they will be managed, and who will receive them. Testamentary trusts can be revocable or irrevocable, and the settlor can choose to create a trust with a specific purpose or for general purposes. The trustee of a testamentary trust in North Carolina has the responsibility to manage and distribute the assets according to the terms of the trust. This means managing investments and real estate, filing taxes, paying beneficiaries, and ensuring the trust objectives are met. The trustee also has a fiduciary duty to act in the best interests of the settlor and beneficiaries. Testamentary trusts are an important way to ensure that assets are managed and distributed according to the wishes of the settlor after their death. As such, it is important to seek legal advice when drafting these documents in order to ensure that they are created correctly.

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What is a testamentary trust?

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