A testamentary trust is simply a trust established by someone's will. Rather than all the deceased's assets being distributed by the executor upon death, some or all of the assets remain in the trust for the benefit of a specific group of beneficiaries named in the will. Trust income distributed to children, of any age, will be taxed at normal marginal rates, rather than the penalty rates that normally apply to minors' unearned income. Note: the trustee can have full discretion as to who receives trust income and capital or restrictions can be provided. Testamentary Trusts are of benefit: for families with small children where extra income would be needed to support the surviving family members should a parent die where minimising tax is important.
A trust created in a will that does not come into existence until after the testator's death. Sometimes a living trust may use this term to refer to different terms applicable to the trust after the death of the grantor.
A will can have a trust written into it, called a Testamentary Trust, which is set into motion by the Court after the will reaches a certain point of execution, and is used only after the death of the person whose estate it represents. TRUST is defined as any arrangement where property is to be held and administered by a trustee for the benefit of those for whom the trust was created. Depending on the type and how it is established, a trust may be revocable (changeable) or irrevocable (not changeable).
A trust of certain property passing under a will and created by the will. A residuary trust is a trust of the residuary estate. A marital (marital deduction) trust is a trust for the benefit of a surviving spouse, which qualifies the trusteed property for the estate tax marital deduction.
A Trust established in a person's Will. A Testamentary Trust only comes into operation after the Will has been probated and the assets have been distributed in accordance with the probate court order. In many states, Testamentary Trusts remain subject to the jusridiction of the probate court.
A testamentary trust is a trust established in a Last Will and Testament, typically for the benefit of minor children. This trust allows you to leave property to minor children but have other responsible adults manage that property until the children reach a certain age.
A trust created by a Will and does not actually come into existence until the death of the person creating the trust. A Testamentary Trust can be drafted so as to take advantage of the various estate planning features, such as the avoidance of some estate tax and can be used to create a Marital or Family Trust, as well.
A testamentary trust (sometimes referred to as a will trust) is trust which arises upon the death of the testator, usually under his will. Testamentary trusts are distinguished from inter vivos trusts, which are created during the settlor's lifetime.