Estate planning is a sure way to ensure your loved ones are well taken care of after your death. Setting up a trust ensures your assets are distributed according to your wish, even after death. It also ensures your assets are safe and helps you avoid tax liabilities.
There are different types of trusts you can choose from, depending on your wishes and your family's needs; this includes Testamentary Trusts. Those with young children or grandchildren usually set up a Testamentary Trust. There are different types of Trusts, and they can determine how and when your assets will be distributed after your death.
This article will explain everything you need to know about Testamentary Trust and the role of a Trust Attorney in the entire process.
Can a Trust Attorney Assist With Testamentary Trusts?
Trust attorneys can assist with testamentary trusts by providing legal guidance and expertise in setting up and managing these types of trusts. They can help you understand the legal requirements and implications of creating a testamentary trust, draft the necessary legal documents, and ensure that your wishes are properly documented and carried out.
Trust attorneys can also advise on selecting trustees, managing assets, and distributing funds according to your instructions. If you're interested in creating a testamentary trust, it's best to consult with a trust attorney who can provide personalized guidance based on your specific needs and circumstances.
What is a Testamentary Trust & How Do They Work?
A Testamentary Trust can only be set up following the instructions in your Last Will and Testaments; it also outlines when your assets will be distributed among your beneficiaries. A Testamentary Trust is different from a Living Trust in that it’s only effective after the death of a person.
A Testamentary Trust involves three significant parts, which include a grantor, a trustee, and the beneficiary. The grantor (the person creating the trust) appoints the trustee to oversee the assets before distributing them among the beneficiaries. These trusts are used mainly by people with young children who must keep the assets until the children reach a certain age or meet certain conditions.
Types of Testamentary Trusts
The two main types of Testamentary Trusts include separate trusts and family trusts.
- Separate for Children Testamentary Trust
When setting up a Testamentary Trust, separate trusts mean creating a special trust for each beneficiary. In most cases, this implies setting up a different Trust for each child without splitting your assets unequally. These trusts are then overseen by a trustee and then distributed individually instead of distributing them all at once.
- Family Testamentary Trust
Family Testamentary Trusts, or “pot” trusts, mean all of one’s assets are managed together. Family Testamentary Trusts enable parents to share assets based on the needs of their different kids. These types of Trusts are often used by parents who want to leave more assets or funds to one child. For instance, a child with a particular need like autism may require extra financial support, and that’s why people set up a Family Testamentary Trust.
Conclusion
Are you planning to set up a Testamentary Trust? At Citadel Law Firm, our trust attorneys specialize in Trusts and other estate planning strategies.
Our Trust Attorneys at Citadel Law Firm are here to help you determine and execute an estate planning strategy that best suits your financial situation and is unique to your family. Our services include sorting legal trust documents to ensure everything goes smoothly.
Contact us today to learn more about our services and get started!