What is a testamentary trust?

A testamentary trust is an arrangement where someone can designate assets to be managed and held for the benefit of another person or persons. In Virginia, a testamentary trust is created through a written will that clearly states the trustor’s wishes and must be signed, notarized, and witnessed by two individuals. The trustor is the person who creates the trust. The trustee is the individual or organization that is tasked with managing the trust’s assets. The beneficiary is the person or persons who will benefit from the trust. A testamentary trust can help preserve assets for future generations and provide income and financial security to dependents of the trustor. Trusts can also be used to manage and protect assets in case of incapacity or death. The trustor can set the terms of the trust in their will and can designate who receives the trust’s wealth and assets. The trustor can also specify how, when, and how much the trust’s assets should be used. In Virginia, the person administering the trust must adhere to the governing laws of the trust when managing or distributing the trust’s assets. A testamentary trust can provide financial security and stability for beneficiaries and help ensure that the trustor’s wishes are followed upon their death.

Related FAQs

How are payments distributed through probate?
Can I change the beneficiaries of my will after I die?
What are the estate planning documents I should have?
What is the difference between joint and single wills?
What property is subject to probate?
Can a will be changed after the testator has died?
How long does it take to probate a will?
How do I make a will?
What is a durable power of attorney?
How do I create a trust for my beneficiaries?

What is a testamentary trust?

Related FAQs

Related Blog Posts