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 ?
The client can change a testamentary trust at any time.
This can often be confusing to nontax specialists, who are generally aware of the need to name an estate or revocable trust but not a separate testamentary trust formed under that instrument.
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.
For this reason, a testamentary trust that qualifies for the marital deduction will be used.
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.
In addition, the period that a testamentary trust could hold shares would be extended.
After thinking through the details, pet owners can make their intentions known in one of several different legal documents, namely a Pet Care Revocable Trust, a Pet Care Testamentary Trust or a Non-Trust Pet Care Plan.