What is a testamentary trust?

A testamentary trust is a legal trust created in a will. This type of trust is established after the death of the willmaker, and the trust’s assets come from the willmaker’s estate. Testamentary trusts are used to manage the assets left behind by the willmaker and distribute those assets to the chosen beneficiaries. In Virginia, testamentary trusts are created in the will and must comply with state law. Generally, the person making the will (the testator) will appoint a trustee to manage the trust’s assets and direct how the trust’s funds should be used. The trustee is responsible for handling all of the assets of the trust, including investing, managing, and distributing assets to the beneficiaries. The trust’s assets can be used to pay for medical and educational expenses, provide a steady income to the beneficiaries, and even provide for charitable causes. Additionally, testamentary trusts can be used to protect assets and shield them from creditors and estate taxes. The trust document will contain specific instructions on how the trust should be managed and will designate who will receive the trust’s assets. It can also include a variety of other instructions, such as allowing the trustee to make discretionary distributions to the beneficiaries of the trust.

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What is a testamentary trust?

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