There are many examples of trusts when you get into estate planning. It is why you might want a second opinion since there is such a range to consider. You may think of trusts as something you chip into over your lifetime, but when it comes to the testamentary trust, that is a process that you do not take part in. Testamentary trusts are the kinds of trusts that come into play after you have already passed on.
If you are thinking of planning your will and testament, this is an excellent time to consider including a trust like this to the proceedings.
Important positives of a testamentary trust is that it can help secure assets in the event of your demise, untimely or not. In the case where you have young children, it can lock up your wealth to distribute when they are ready to receive it. In the North Carolina bar association’s article Using a Testamentary Trust to Simplify Probate: A Strategy for the Client without a Revocable Trust, they discuss how a testamentary trust can quicken the probate process—saving money and headaches for your loved ones.
When you establish a testamentary trust, you designate a trustee whose duty is to carry out the terms of the will and testament. The trustee is required to meet with probate court to ensure that they have handled the trust correctly and in strict accordance to your wishes. This process may include fees that deduct from the principal of the estate.
Planning for retirement and passing on your legacy is a complex process with many options. With the right information you can make it easier on yourself and your loved ones.