What is a testamentary trust?

A testamentary trust is a type of trust that is set up within a will in South Carolina and becomes active upon the death of the trust creator (also known as the “testator”). This type of trust allows the testator to dictate specifics regarding how their estate should be managed following their death. The trust document includes instructions about the custodial and financial management of the estate, who is to manage the trust, and who will benefit from the trust. The trust document also outlines the specific asset distribution plan to beneficiaries. This includes, for example, when and how the beneficiaries will receive their assets and how much they will receive. For example, a testamentary trust could provide for a beneficiary to receive a certain amount of money on their 18th birthday or another age determined by the testator. The trust document may also dictate certain conditions that must be met in order for a beneficiary to receive assets. For example, the testator may require that a beneficiary maintain a certain grade point average or engage in some type of work experience before they receive their inheritance. A testamentary trust in South Carolina can provide someone with a great deal of control over when and how their estate is distributed after their death. It also enables the testator to provide an inheritance to beneficiaries while still preserving the estate’s assets for future generations.

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