Some may call it “probate trust”. A testamentary trust works as a built‑in estate‑management tool inside a will, activating only after the testator’s death and giving families a structured way to protect and distribute assets over time.
A testamentary trust does not exist during the grantor’s lifetime; instead, it comes into legal effect only after the will is validated in probate and the estate’s assets are transferred into the trust.
This structure allows a trustee to manage and distribute assets for beneficiaries according to the grantor’s long‑term plan, often with conditions tied to age, milestones, or financial maturity
Once the testator passes away, the probate court oversees the process of establishing the trust, ensuring the trustee follows the instructions in the will. The trustee then manages the assets—investing, safeguarding, and distributing them—until the trust’s terms are fulfilled.
Because the trust is created by will, it is irrevocable once the testator dies, and it may handle all or part of the estate depending on how the will is drafted.
Key Features at a Glance
- Created through a will and activated only after death.
- Subject to probate, unlike living trusts.
- Managed by a trustee who must follow fiduciary standards.
- Useful for minors, young adults, or beneficiaries needing financial protection.
- Irrevocable once established, providing long‑term structure and oversight.
- May include multiple trusts within a single will.
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