Having a complete estate plan is one of the most important things you can do for your family. An estate plan protects your family from making difficult decisions at a very difficult time, allows you to make provisions for the care of minor children, and gives you the peace of mind that comes with making your final wishes known. If you have minor children or wish for your beneficiaries to receive their inheritance over time rather than in a lump sum, your comprehensive estate plan should include a testamentary trust.
Unlike a living trust, a testamentary trust is included in your Will and only goes into effect after your death. It’s typically put into place when you want to leave certain assets to a beneficiary at a specific date in the future; however, there are other instances when such a trust is a good idea. The designated assets can only be added to this type of trust after your Will has been probated. It’s included in your Will, with the provision that a trustee you choose manages the testamentary trust.
Once established, a trustee is appointed to manage the assets of a testamentary trust until the intended beneficiary takes over at a predetermined time that you established (i.e., the beneficiary reaches a particular age or achieves a particular milestone like graduation) or when the assets are exhausted. You should consider establishing a testamentary trust if you want to determine the distribution of your assets, protect those assets from creditors, protect them from potential predators, or safeguard them from poor choices on the part of the intended recipient.
Because a testamentary trust is a great benefit if your estate includes minor children or adults who need lifelong care and guidance, you should consult a qualified estate planning attorney. We can help you determine your best course of action and fully protect your assets. The attorneys at Grissom Law, LLC have the experience and expertise you need. Call us today to get the legal power you need and the peace of mind you deserve.
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