What is a Testamentary Trust?
November 27th, 2009 Filed under: ab trust,Executor Fees,sample wills,Trusts attorney — Estate Planning Author
A testamentary trust is the kind of trust established for minor children or young, adult children in the case of the death of a parent or parents. The fund may involve the deposits of large sums of money to children under the appointment of a trustee who oversees the trust until such time it expires. This kind of trust is perfect for those folks who do not have enough money to set up a revocable trust, which isn’t a cheap endeavor.
It is a less expensive alternative to consider when facing expensive legal fees that may be difficult to afford for some people. If the trust is to be maintained over a long period of time, a trustee (responsible party) may have to go to court to have the testamentary trust checked over by a judge. If this is the case, a trust of this nature can end up being very expensive and over time the fees encountered are deducted from the funds of the trust.
The creation of a testamentary trust means that the person who acts as a trustee must oversee the trust until the time period expires. The trustee can be appointed in the terms of a will, though some may decline the responsibility because of the massive dedication and time required. In the event there is no trustee designated, the court can appoint someone in this capacity, or possibly a family member or friend of the deceased will volunteer to do the job. This is why it is important to discuss the appointment with trusted friends and family members who are willing to act responsibly in the capacity of a trustee.
Money matters are an important part of a last will in testament and something a person should be most diligent about. A final will in testament can ensure your final wishes are carried out, and with a trusted appointee acting as a trustee, you can make sure your children are well provided for in the event of your death.
