What is a Testamentary Trust?
Testamentary Trust is a trust that is created through the probate of a will. The testamentary trust is a provision in a will where someone leaves something to a person or organization or company and it is to be held in a trust.
When is a Testamentary Trust Effective?
After the will is admitted to probate. A Testamentary Trust is a trust established by a will. When the will is offered and admitted to probate then the testamentary trust can be formed.
What do I need to get a Testamentary Trust drafted by a law firm?
It depends. There are many reasons why someone may want a testamentary trust. The most common reason is those that are leaving money to minor children or at the time of the drafting of the will, some of the beneficiaries are children or young adults. The testamentary trust can list when, generally a certain age, the beneficiary of the trust will be given distributions from the trust and/or when the beneficiary gets the entirety of the trust.
Can I limit how long a Testamentary Trust is valid for?
Yes. We can insert a specific time frame as to how long or when the Testamentary Trust shall be in effect. One example of a testamentary trust would be, “To my children so long as they have attained the age of 26, otherwise to the testamentary trust.
What is a Trustee?
The trustee is the person named to oversee (manage) the trust on behalf of another. The trustee can also be the sole or one of the beneficiaries of the trust.
Can I list more than one beneficiary in my Testamentary Trust?
Yes. We can list as many beneficiaries to your testamentary trust as you would like.
Can I have more than one Testamentary Trust in a will?
Yes. You can have more than one testamentary trust in a will with the same or different beneficiaries in each one.
Can I list more than one Trustee in my Testamentary Trust?
Yes. We actually recommend that you list a first, second, and third choice to your listed Trustee in the Testamentary Trust.
Can I list two trustees as co-trustees in a testamentary trust?
Yes. You can have two people serve as co-trustees of a testamentary trust.
How Do I Get Started on Getting a Testamentary Trust Done by a law firm?
Decide who you leave some or all of your money and estate to, and then decide if you want them to receive it outright or if a certain event (e.g. reaching a certain age) or milestone is reached (e.g. graduation from college).
What is an example of a Testamentary Trust?
“In the event that any beneficiary, other than my spouse, has not reached the age of 26 years, then in such event I give, devise and bequeath the share or shares of such beneficiary to my Trustee, IN TRUST NEVERTHELESS, for the uses and purposes hereinafter set forth.”
Here is another example of provision from a Testamentary Trust we drafted for a client.
Any income or corpus not so distributed or used shall be separately accumulated for each beneficiary. Upon attaining the age of 26 years, each beneficiary shall have the option of withdrawing for his or her separate share one-third (1/3) of the property then constituting his or her separate trust estate. Upon attaining the age of 28 years or any time thereafter, each beneficiary shall have the option of withdrawing one-half (½) of the remaining property then constituting his or her separate trust estate. Upon attaining the age of 30 years or any time thereafter, each beneficiary shall have the option of withdrawing the remaining balance of the property then constituting his or her separate trust estate. Each beneficiary shall be advised of his or her option ninety (90) days prior to his or her respective birthdays when such options shall arise. Furthermore, any beneficiary intending to exercise any of his or her options to withdraw, shall give the Trustee at least sixty (60) days’ written notice of such intent. The Trustee may, in the Trustee’s sole discretion, waive all or any portion of such sixty (60) days’ notice. In the meantime, during the pendency of each trust, the Trustee shall have the same powers, discretions, duties and responsibilities that the Trustee has generally with respect to this trust as to administration and distributions.
Does the Oxner Legha Law Firm Draft Testamentary Trusts?
Yes! Call the Oxner Legha Law Firm at 346-327-9500 to set up a consultation.
Does my executor handle my testamentary trust?
No. You can list your executor also as your trustee in your testamentary trust but they do not need to be the same person.
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