Testamentary Trust

A testamentary trust is a trust created in a will. It is not a living trust, which is created during the settlor's lifetime. A testamentary trust takes effect upon the settlor's death.

There are two types of testamentary trusts: revocable and irrevocable. A revocable trust can be changed or revoked by the settlor at any time before death. An irrevocable trust cannot be changed or revoked by the settlor.

Testamentary trusts can be used for a variety of purposes, such as providing for the settlor's children or grandchildren, paying for the settlor's funeral expenses, or leaving money to charity.

There are a number of advantages to using a testamentary trust. First, a testamentary trust can provide for the settlor's beneficiaries in a way that is consistent with the settlor's wishes. Second, a testamentary trust can protect the settlor's assets from creditors and lawsuits. Third, a testamentary trust can provide for the settlor's beneficiaries in a way that is tax-efficient.

However, there are also some disadvantages to using a testamentary trust. First, a testamentary trust is not as flexible as a living trust. Second, a testamentary trust may take longer to set up than a living trust. Third, a testamentary trust may be subject to probate, which can be a time-consuming and expensive process.

If you are considering using a testamentary trust, it is important to speak to an experienced estate planning attorney to discuss the pros and cons of this type of trust and how it can fit into your overall estate plan.