Learn Ask A Question Get Help
List All Law Topics   All States   State Specific   Videos
 
 Practice Area
 Location

Ask an Estate Lawyer Online Now.
Lawyers Are Online!
Ask a Question.
Get an Answer ASAP.
Wills
Testamentary Trust Will

A testamentary trust Will sets up one or more trusts that part or all of your estate assets will go into at the time of death. Like all other Wills, it leaves your estate, or part of your estate, to your beneficiaries. In the case of a testamentary trust Will, one or more of the beneficiaries is the Trust itself. The assets (or part of them) go into the trust for beneficiaries named in the Trust. Multiple testamentary Trusts can be established in a Will.

The trustee of the Trust is sometimes the executor of the Will, but not always. The terms of the Trust can provide for payment of income or turning over property to the beneficiaries of the Trust, with distribution either fixed in the Will or left to the discretion of the trustee.

Although the beneficiaries have an interest in the Trust, the trustee is the legal owner of the property held in the Trust and has the legal authority to manage the assets. The trustee’s obligations include investment decisions and preparing and filing tax returns on behalf of the Trust.

A testamentary Trust created by a Will has no power or effect until the Will of the grantor (deceased) is probated. Unlike some other Trusts, this type of Trust does not avoid the need for probate, but it can accomplish other estate planning goals. For example, a testamentary Trust can be used to reduce estate taxes on the death of a spouse or provide for the care of a relative or a disabled child. Many parents set up a testamentary Trust to ensure their minor children, in the name of a guardian, receive a steady income. Since the Trust is considered its own entity, the Trust itself will be taxed separately from the beneficiaries and beneficiaries will not be taxed individually.


HACKER SAFE certified sites prevent over 99.9% of hacker crime. State Law Center  |  Legal Resource Directory  |  Legal Articles  |  Insurance Advice and Quotes  |  FreeAdvice Answers  |  Community Forums
Media  |  Privacy Policy  |  About Us  |  Contact Us

FreeAdvice® has been providing millions of consumers with outstanding legal and insurance information and general advice, free, since 1995. While not a substitute for personal advice from a licensed professional, FreeAdvice is available AS IS, subject to our disclaimer and conditions of use.
FreeAdvice®, AttorneyPages®, ExpertPages® are registered trademarks and units of Advice Company.
All Rights Reserved © 1995-2010