21 Jun What is a Testamentary Trust and why should I care?
A testamentary trust is a trust that is established in a person’s will and comes into effect after their death. It is a legal arrangement where the assets of the estate are held and managed by a trustee for the benefit of one or more beneficiaries, according to the terms of the will.
Testamentary trusts are often used for estate planning purposes, such as to provide for minor children or individuals who are unable to manage their own affairs. They can also be used to provide ongoing support for a surviving spouse and to protect assets from creditors.
In a testamentary trust, the trustee has the responsibility to manage the assets of the estate and distribute them according to the terms of the will. The trustee must act in the best interests of the beneficiaries and follow the instructions laid out in the will. The trustee may be an individual or a corporate trustee, such as a trust company.
One advantage of a testamentary trust is that it can provide greater control over the distribution of assets after death.
However, setting up a testamentary trust can be complex and may involve significant legal and administrative fees. It’s important to work with a legal professional to ensure that the trust is set up properly and meets your needs and goals. If you would like to discuss the foregoing further or if you wish to obtain general information regarding your estate or incapacity planning, please contact us for a free initial consultation. Victoria Lawyers, Sitka Law Group is conveniently located on Shelbourne Street near the intersection of the borders of Victoria, Oak Bay and Saanich.