What is a testamentary trust?

A testamentary trust is a trust set up under the provisions of a will. It is established upon the death of the testator, which is the person who wrote the will. In South Carolina, a testamentary trust contains certain conditions which must be met upon the death of the testator. These conditions include but are not limited to who will receive the assets, when they will receive them, and how they will be used. The testator can also specify the trustee and who will be responsible for managing the trust. Trusts are useful for providing for the care of the testator’s dependents in the event of death. They also provide tax benefits to the beneficiaries, like not having to pay income tax on money they receive from the trust. Trusts also allow the testator to bequeath their assets to whomever they wish without having to go through probate court. A testamentary trust is created under the will of the testator and will only take effect upon the death of the testator. The testator must include information in their will that specifies the conditions of the trust and be able to appoint a trustee. It is important to follow the laws of the state in order to create a valid testamentary trust. In South Carolina, a trust must be created in accordance with the South Carolina Trust Code. It is important to seek legal advice when considering setting up a testamentary trust.

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What is a testamentary trust?

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