What is a testamentary trust?

A testamentary trust is a trust established in a will. In the will, a person (the settlor) names a Trustee to manage the assets specified in the will and names a Beneficiary or Beneficiaries to whom the Trustee will administer those assets. In Florida, the Trustee must be an individual, a professional fiduciary, or a bank or trust company. The assets transferred to the trust upon the settlor’s death are known as the “Trust Property” and are managed by the Trustee and administered to the Beneficiaries according to the terms of the will. The Trustee is responsible for ensuring that the Trust Property is invested wisely and that the Beneficiaries receive their appropriate distributions. The Trustee also has a legal duty to use the Trust Property for the benefit of the Beneficiaries in the way the settlor has specified. Depending on the settlor’s wishes, the Trustee may also have an obligation to manage the Trust Property for the benefit of more than one Beneficiary. A testamentary trust can be a very effective estate planning tool, allowing the settlor to manage their assets after death in accordance with their wishes. The trust can also provide financial protection to the Beneficiaries, such as shielding them from creditors or ensuring that their inheritance is used in an appropriate way. For these reasons, testamentary trusts are an important part of wills and probate law in Florida.

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What is a testamentary trust?

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