A testamentary trust is created by the terms of a will. The trust is activated upon the death of the testator. With a testamentary trust, the testator bequeaths money or other assets to be held in trust until such time the heir is capable of managing the fund. Testamentary trusts are irrevocable, which means that once the trust is activated it cannot be revoked or rescinded.
Such trusts are often used to provide for minor children or a person who is disabled or otherwise unable to provide for himself or herself. Also, testamentary trusts can be used to bequeath money to be used for the care of a pet after the death of its owner.
The person or entity named as executor in the will may also be the trustee of a testamentary trust. The trustee can be a bank, a family member, or other adult person.
Consult with an attorney to learn more about testamentary trusts and whether such a trust is the best option for you. Your attorney can prepare your will and include the testamentary trust according to your wishes. An attorney can help you choose a trustee, and can advise your chosen trustee on the responsibilities and commitment required.