A testamentary trust is a trust that you create within your last will and testament. You can work with an experienced attorney to include a testamentary trust in your will so you are able to designate a trustee to manage certain assets. If you have a beneficiary who you want to take care of, but you don’t want to directly give money or property to that person, a testamentary trust could be the answer.
Unsworth LaPlante, PLLC can help you to understand what a testamentary trust is and how this type of trust actually works. Our legal team can also assist you in comparing testamentary trusts to other trust types and in making a decision regarding what kind of trust makes the most sense for your situation. If you do decide you wish to include testamentary trusts within your last will and testament, we can assist you ensuring you use the proper language and include the correct will provisions to create the trust. Give us a call to find out more.
Three Benefits of a Testamentary Trust
There are many significant advantages of a testamentary trust. Three big benefits include the following:
- You have a lot of flexibility: You can retain control over assets until you pass away when you create this type of trust, since the trust is created in your will. You have flexibility when it comes to who you should name as a trustee and you have a lot of leeway in the specific instructions that you provide when you create a trust.
- You can protect assets: When a testamentary trust is created, you can maintain more control over assets and you can protect the assets that you are transferring. The heirs or beneficiaries does not just inherit the money or property without any strings attached. A trustee of your choosing, who you can count on to be responsible, will take charge of managing trust assets for the beneficiary. If the beneficiary has lots of creditors coming after him or isn’t responsible enough to manage money, the trust assets will still be safe.
- You can ensure a beneficiary is provided for: Testamentary trusts are commonly used to leave money to minor children, although they do not have to be. By maintaining more control over assets and selecting a person who you can count on to serve as the trustee, you can make sure that the assets you leave behind are used appropriately to enhance quality of life for your chosen beneficiary.
There may also be tax advantages and other perks associated with the creation of a testamentary trust, depending upon the specifics of your situation. It is important to understand all of the advantages and possible disadvantages. You can work with an experienced attorney to find out whether or not the creation of a testamentary trust in your will would be a smart estate planning step.
Should You Create a Testamentary Trust?
Whether or not you should create a testamentary trust is going to depend upon your situation. If you have young children who you wish to provide for or if you want to leave money to someone you don’t believe can effectively manage it, then a testamentary trust could be the answer. However, you can also create other kinds of trusts outside of the context of your will as well, and some of these other trusts can provide significant advantages such as reducing or avoiding estate tax.
Your estate plan must be customized to your specific situation, as determined by the value of your estate and your goals for your legacy. You should make your plans in consultation with an attorney who can help you to identify the legal tools that will best provide for your loved ones and protect your wealth.
Getting Help from A Vermont Trust Lawyer
Unsworth LaPlante, PLLC has the skill and experience necessary to help you create a testamentary trust or to assist you with any kind of trust creation. Our legal team knows Vermont trust law very well and we can help you to make the most effective use of trusts to protect your assets and your heirs or beneficiaries.
To find out more about how trusts work and to get help determining whether or not you should create a trust, join us for a free seminar . You can also give us a call at (802) 879-7133 or contact us online to get personalized help with trust creation so you can rest assured that the trust you create is the best type of trust to meet your needs. Call today so you can get started on creating a trust.