A testamentary trust isn’t exactly *part* of a will in the sense of being a standard clause, but rather it’s created *by* a will; it springs into existence upon the death of the testator (the person making the will) and is detailed within the will document itself.
What are the benefits of creating a testamentary trust?
Testamentary trusts offer a flexible way to manage assets after death, providing control even beyond the grave. Unlike a simple distribution of assets, a testamentary trust allows for specific instructions regarding how and when beneficiaries receive their inheritance. For example, a parent might establish a testamentary trust to distribute funds to a child over several years, ensuring responsible spending or funding for education. Approximately 60% of high-net-worth individuals utilize trusts as part of their estate plans, highlighting their effectiveness in preserving wealth and guiding its distribution. These trusts are particularly useful for providing for minor children, individuals with special needs, or those who may not be financially savvy. They provide a layer of protection and management that a direct inheritance may lack.
How does a testamentary trust differ from a living trust?
The key difference lies in *when* the trust is created. A living trust, also known as an inter vivos trust, is established during the testator’s lifetime, allowing for immediate management of assets and avoiding probate. A testamentary trust, on the other hand, only comes into effect upon death, established through the will. This means assets must still go through probate before being transferred into the trust. Currently, probate costs can range from 3% to 7% of the estate’s total value, depending on the state and complexity of the estate. A living trust offers quicker access to assets for beneficiaries and avoids public record – a testamentary trust does not. However, testamentary trusts are less expensive to create initially than living trusts, making them an attractive option for some.
I remember old man Hemlock, and his unfortunate estate…
Old Man Hemlock was a fixture in our town, a gruff but secretly generous soul. He always said he’d take care of things with a simple will. He never bothered with a trust, figuring his assets were straightforward. After he passed, his will directed everything to his adult son, but the son was struggling with addiction. Within months, the entire inheritance was gone, squandered on bad habits. It was heartbreaking to witness. Had Old Man Hemlock established a testamentary trust with stipulations for responsible distribution, his intentions to provide for his son could have been fulfilled and the funds could have been used for rehabilitation and support. It was a harsh lesson learned about the importance of carefully structured estate plans.
But Sarah’s story had a happy ending…
Sarah, a friend of mine, recently lost her mother. Her mother had a well-crafted will that included a testamentary trust for Sarah’s young children. The trust outlined that funds would be used for education, healthcare, and general welfare, managed by a trusted trustee until the children reached a certain age. It was a huge relief for Sarah, knowing that her children’s future was secure, even in the midst of grief. The trustee, following the will’s instructions, expertly managed the funds, providing for the children’s needs and ensuring their financial stability. The peace of mind it gave Sarah was immeasurable, demonstrating the true value of a thoughtfully constructed testamentary trust. This is why many people seek legal counsel such as Steve Bliss, to ensure their last wishes are followed.
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About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
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Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “Can I use estate planning to protect assets from creditors?” Or “Can an executor be removed during probate?” or “Can I include my business in a living trust? and even: “Can I get a mortgage after filing for bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.