Focused And Personalized Attention
Concerning Your Estate Planning Needs

Is a testamentary trust right for you?

On Behalf of | Mar 27, 2023 | Estate Planning |

A testamentary trust is created in a person’s will and takes effect upon death. It is a legal arrangement that allows you to control how your assets are distributed after you pass away. 

While a testamentary trust can be a great estate planning tool, it may not be the right choice for everyone. Whether a testamentary trust is right depends on your unique circumstances and estate planning goals. 

You want to retain control over your assets

A testamentary trust may be a good option if you want to retain control over your assets even after you pass away. By creating a trust in your will, you can specify how and when your assets are distributed to your beneficiaries, providing peace of mind knowing that your wishes will be followed.

You have minor children or beneficiaries with special needs

If you have minor children or beneficiaries with special needs, a testamentary trust can help ensure their needs are met after you pass away. You can specify how and when the trust assets are distributed to these beneficiaries, which can help protect them from making poor financial decisions or being taken advantage of by others.

You want to protect your assets from creditors and lawsuits

A testamentary trust can be helpful if you’re concerned about protecting your assets from creditors and lawsuits. By creating a trust in your will, you can help shield your assets from potential legal claims.

You have a large estate

A testamentary trust can help minimize estate taxes and probate costs if you have a large estate. By creating a trust in your will, you can potentially reduce the value of your estate for tax purposes and avoid probate fees, which can be significant for larger estates.

A testamentary trust can be an effective estate planning tool for those who want to retain control over their assets after they pass away, protect their assets from potential legal claims or minimize estate taxes and probate costs. However, it may not be the right option for everyone. 

Let’s Do This Together.

FindLaw Network