testamentary trust

A testamentary trust is a legal arrangement established through a will that takes effect only after the grantor's death. This type of trust is designed to manage and distribute assets to beneficiaries according to the grantor's specific instructions outlined in their will. It is particularly useful for individuals who wish to provide for beneficiaries with special needs, ensuring their ongoing care without jeopardizing their eligibility for government benefits.12

Key features of a testamentary trust include:
* Creation: Established via a will, it becomes active only upon the testator's death.12
* Purpose: Can be customized to manage assets for beneficiaries, including those with special needs.12
* Probate: Requires the probate process, which can add costs and delay asset distribution.12
* Control: The grantor retains full control over assets during their lifetime.2

While it offers control and can be tailored for specific needs, it is subject to probate and interpretation by the state.1