testamentary trust

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testamentary trust

n. a trust created by the terms of a will. Example: "The residue of my estate shall form the corpus (body) of a trust, with the executor as trustee, for my children's health and education, which shall terminate when the last child attains the age of 25, when the remaining corpus and any accumulated profits shall be divided among my then living children." A testamentary trust differs from an "intervivos" or "living" trust which comes into being during the lifetime of the creator of the trust (called trustor, settlor or donor), usually from the time the Declaration of Trust is signed. (See: will, trust, living trust)

References in periodicals archive ?
Those factors can make a testamentary trust, one set up in the decedent's will, a useful choice.
For CPAs involved in trust compliance and planning, the key step when any testamentary trust is formed is to have a meeting with the trustee and trust counsel to review the trust and how it should be operated.
Does your will create a testamentary trust to benefit your spouse, common-law partner or children?
It should be noted that a testamentary trust may be named as the beneficiary of a life insurance policy on the life of the testator.
All states that tax the income of trusts base their jurisdiction to tax resident trusts on a combination of one or more of the following factors: 1) residence of the testator of the trust at death for a testamentary trust (resident testator), or residence of the settlor at the time the trust becomes irrevocable for a living trust (resident settlor); 2) residence of the trustee; 3) place of administration; or 4) residence of the beneficiaries.
While living wills are set up during a person's lifetime, another instrument called a testamentary trust is established through a will upon an individual's death.
Guardian also helps to form personal irrevocable trusts (living trusts) and testamentary trusts.
The due date for the election would be April 30, 1996 for the individual proprietor of the unincorporated business, or 90 days after the fiscal year-end for an estate or testamentary trust.
Decanting may permit the modification of an existing bust, such as a testamentary trust, in order to provide a more favorable result As decanting grows in use, is the fiduciary obliged to change situs and the bust if they are not optimal?
Testamentary trusts are generally easy and inexpensive to set up.
The government announced its intention in the March 2013 federal budget to hold consultations on possible measures to eliminate the tax benefits that arise from taxing testamentary trusts and estates at graduated rates, after a reasonable period of administration for estates.
For an inter vivos trust, when the trust became irrevocable or for testamentary trusts, the state is where the testator was domiciled at death.