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 ?
This is because the new rules provide that existing testamentary trusts and estates that have existed for longer than 36 months and that have off-calendar yearends will have a deemed year-end as of Dec.
Testamentary trusts are established under a person's will and have no effect until the testator's death and the probate of the will.
Michigan taxes a testamentary trust solely on the basis of a resident testator, and taxes a living trust on the basis of a resident settlor unless all beneficiaries, all trustees, and all administration of the trust takes place outside of the state.
When the second spouse dies, the will may then become the vehicle to transfer ownership of property, create a testamentary trust, appoint a guardian, etc.
Testamentary trusts allow for various distribution schedules.
Most trusts will fall within three categories: life insurance trusts, charitable remainder trusts, and testamentary trusts, he said.
Estates, testamentary trusts and unincorporated businesses may have a non-calendar fiscal year-end (i.
The establishment of a testamentary trust under a will creates a "new taxpayer," which can provide annual tax savings for the trust's beneficiaries.
In the trust business, Sumitomo Trust will provide stock transfer agent and pension trust services to Aozora Bank's corporate customers while offering testamentary trust services to its individual customers, they said.
In addition, intestacy may apply to a testamentary trust, in the event all of the trust beneficiaries die prior to full vesting of their interests.
The sellers were the estate of Herschel Friday, Nancy Friday, William and Peggy Sutton, William and Elizabeth Terry, the Boyce Love Testamentary Trust, William and Kay Patton, William and Mary Lou Cravens and Oaklawn Jockey Club Inc.
All such assets shall be held managed and distributed as a part of said Trust according to its terms and not as a separate testamentary trust.