Also known as: testamentary trusts · will-created trust
Written by attorneys · grounded in primary & secondary sources — see below
A trust created by a will that takes effect upon the testator's death. The trust property passes from the testator to a trustee who holds legal title for the benefit of designated beneficiaries according to the terms of the will.
Thomas Tate's will creates a trust for his minor children and names a corporate trustee. After Thomas's death the probate court transfers the residuary assets to the trustee. The trustee holds legal title and distributes income and principal exactly as the will directs for the children's benefit.
Tara Tran, domiciled in State A, executes a will creating a testamentary trust of real property located in State B. After Tara's death a beneficiary challenges the trust's validity under State B law. The court applies the law of Tara's domicile at death to determine whether the testamentary trust is valid.
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A testamentary trust is created by a will and arises only after the testator's death. An inter vivos trust is created and funded during the settlor's lifetime.
Yes. Because it is created by will, the trust terms must satisfy the Wills Act formalities and appear in a written will.
No. Unless the will provides otherwise, the property becomes part of the existing trust and is administered under its governing instrument, including later amendments.
The law of the testator's domicile at death ordinarily governs, unless the testator manifested an intention that the trust be administered elsewhere.
…the life beneficiary of three quarters of his estate, for whose comfort, support and anticipated increased medical expenses the testamentary trusts were evidently created. Testimony by petitioner’s investment manager, and by the objectants’ experts, disclosed that the annual yield on Kodak stock in 1973 was approximately 1.06%, and…