What is a Testamentary Trust Will?

A testamentary trust will operates in conjunction with one or more trusts that you create, by generally providing that all or part of your assets are to be placed into your trust(s) upon your death.  In essence, one of the beneficiaries of your testamentary trust will is the trust or trusts that you have created. 

Asset Distribution

Some or all of your assets are transferred to the trust(s) according to the terms and provisions of the testamentary trust will, and then distributed to the named beneficiary or beneficiaries of your trust(s) by a named trustee.  However, unlike some other types of wills and/or trusts, a testamentary trust will does not become effective until the will is probated, so this estate planning technique is not designed to avoid probate.  Nonetheless, depending on your situation, this type of will and trust combination can meet some of your estate-planning needs, such as the desire to provide income to your minor children in the event of your untimely death, or to care for a disabled adult child.  A trustee is appointed to manage the trust’s investments and disbursements, according to the terms of the trust or will, or, in some cases, depending on the discretion of the trustee. 

Therefore, the amount and timing of each distribution to the trust’s beneficiary or beneficiaries is unique, depending on the situation. While the trust remains in effect, the beneficiaries do not legally have any ownership in the trust; rather, responsibility for the trust is solely left up to the trustee.  While the trustee also acts as the executor of the testamentary trust will in many cases, the trustee and executor need not be the same person. 

Do You Need a Lawyer?

As a testamentary trust will is part of a larger, more comprehensive estate plan, you must use the services of attorney if you wish to execute such a document.  By working with your attorney to create an estate plan that is in your best interests and will protect your assets for your beneficiaries, you may be able to safeguard your assets from probate altogether, thus saving your beneficiaries both time and money.