By Courtney Nosari Wall
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17 May, 2024
A testamentary trust is a type of trust established by a will that only becomes active upon the death of the testator. The will outlines the terms and conditions of the trust, designates a trustee to manage the trust, and specifies the beneficiaries who will receive the trust’s assets. Unlike living trusts, which are created and managed during a person’s lifetime, testamentary trusts are part of the probate process. Including a testamentary trust in your estate plan can be particularly beneficial if you have minor children, special needs dependents, or if you wish to ensure that your assets are managed prudently over time. It allows you to set conditions on inheritance, such as reaching a certain age or achieving specific milestones, which can help instill a sense of responsibility in beneficiaries. Additionally, testamentary trusts can be a safeguard against unforeseen life events that may impact your beneficiaries, providing a layer of financial security and stability.