TRUST SERVICES
Testamentary Trust
A legacy-focused financial plan that stays dormant in a will, activating only upon death to protect and distribute assets precisely as directed.
What is a testamentary trust?
- Unlike a living trust (which is created during your lifetime), a testamentary trust is created through the instructions in your last Will and testament.
- When you pass away, the Will goes through probate, and the trust is funded with the assets you designated after the estate administration is completed. Only then does the trust come into existence.
- The trustee then manages the trust property in accordance with the instructions set out in your Will. This type of trust is especially useful when you want to control how and when your beneficiaries receive their inheritance.
- This type of trust is irrevocable once activated and cannot be changed.
What are the benefits?
Controlled distributions
You can stagger payouts instead of giving a large lump sum
Asset protection
Shields inheritance from divorce, poor financial decisions or creditors
Education & care planning
Ideal for minor children or beneficiaries with special needs
Flexibility in planning
Can be changed or revoked anytime during your lifetime by updating your Will
Relatively
Simple and inexpensive to create
Who should consider a testamentary trust?
