What is a testamentary trust?

There are many options you will have as you plan your estate in Pennsylvania. One of those options in a testamentary trust, which is a trust that is set up within your will, according to Yahoo! Finance. It is laid out and specified within the will. When you pass away, the assets indicated as part of the trust will go into the trust.

It is important to understand the point that the trust does not actually exist until you die. You have the ability to change it at any time, but once you die, it becomes irrevocable and cannot be changed by anyone else.

You will create the trust when you create your will or add it to an existing will. The trust will have a trustee who will manage it after you die and before it is administered to the beneficiary by the probate court.

In the trust, you will name the trustee and beneficiary. You will detail the assets to be contained in the trust and state when the trust should be disbursed to the beneficiary.  The probate court will then ensure you wishes are followed once you die.

You can use this type of trust if you want to maintain control over assets or feel you may have to make changes to the trust while you are still alive. It also streamlines the process because you can create it while creating your will, which helps cut down on your estate planning activities. This information is for education only and in not intended as legal advice.

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