What Is A Testamentary Trust?
Of the different tools that may be used in an estate plan, trusts can be especially effective. By creating a trust, you can specify how your assets are to be managed and distributed after your death. This can help to minimize taxes, protect your assets, and provide for your loved ones. A testamentary trust is a type of trust that is created through a will. If you are interested in using trusts as part of your estate planning, be sure to speak with an experienced attorney who can help you create the right type of trust for your unique situation.
At The Marques Eason Law Group, we work closely with individuals and families to address their estate planning needs. We have extensive experience helping clients create multiple different types of estate planning documents and agreements, and we can provide advice and guidance on when and how to use different types of trusts. If you need to know more about your options for managing and protecting your assets while ensuring that you will be able to provide for the needs of yourself and your loved ones, we are here to answer any questions you may have and assist you in creating a comprehensive estate plan.
Benefits of Testamentary Trusts
Trusts that are created during a person's lifetime can be used to hold and manage different types of assets. This allows for the easy and efficient transfer of assets to beneficiaries, and this can be done without the need to go through the probate process. In some cases, a pour-over will may be used to transfer some or all of a person's assets into an existing trust after the person's death.
A testamentary trust, on the other hand, will not be created until after a person's death. In these cases, the person's last will and testament will provide instructions for the creation of a trust, the transfer of assets into the trust, and the distribution of assets to beneficiaries. As with other types of trusts, a trustee will be named who will manage the assets in the trust and ensure that they are properly distributed to beneficiaries based on the testator's instructions.
Testamentary trusts can provide a number of benefits. These trusts are often used by people who wish to pass assets to their minor children in the event of their death. This will ensure that their assets will be used to provide for the children's needs, and full ownership of assets may be transferred to children once they reach adulthood. Testamentary trusts may also be used to ensure that certain conditions will be met before assets can be transferred to beneficiaries. For example, a person may provide instructions stating that a beneficiary will receive assets after they reach a certain age.
Since the terms of a person's will must be followed when creating a testamentary trust, these types of estates will need to go through the probate process. The executor of the estate will carry out the instructions the testator left in their will, ensuring that the trust will be created and funded properly. However, depending on whether some or all of the person's assets will be transferred into a testamentary trust, the probate process may be able to be completed relatively quickly and easily, and assets may then be distributed to beneficiaries based on the instructions that the testator provided.
Contact Our Beverly Testamentary Trust Attorney
Providing for the creation of a testamentary trust when creating a will can provide peace of mind for a person, as they can be sure that their assets will be managed and distributed in accordance with their wishes. If you are considering using a testamentary trust in your estate plan, an experienced attorney at The Marques Eason Law Group can ensure that the trust will be created and administered correctly. To learn how we can help you address these issues, contact us at 773-973-3755 to set up a consultation.