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)

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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.

Administering a testamentary trust for a child: creating a road map to follow

Does your will create a testamentary trust to benefit your spouse, common-law partner or children?

Big changes in estates--are you ready?

Testamentary trusts are established under a person's will and have no effect until the testator's death and the probate of the will.

Trusting in trusts

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.

So you left your trust at home when you moved to Florida

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.

Where there's a will: the basics of estate planning ... for procrastinators

[section]732.603 with regard to testamentary trusts.

RPPTL section takes a number of legislative positions

Total Affluent: Households with $100,000 + income and/or net worth of $500,000, excluding principal residence Any Trust Account 36% Revocable Living Trust 21% Testamentary Trust 15% Insurance-Funded Trust 8% Charitable Trust 5% Other Trusts 8% Custody Account 5% Wealth: Households with $1 million+ in investible assets Any Trust Account 59% Revocable Living Trust 37% Testamentary Trust 7% Insurance-Funded Trust 17% Charitable Trust 9% Other Trusts 15% Custody Account 9% Source: Spectrem Group, 1999

Trust-Worthy Insurers

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. With unincorporated businesses, this exception is limited to "eligible capital property" of the business, such as goodwill or customer lists.

Grandfathering capital gains

* AMONG THE COMMON ESTATE PLANNING techniques are testamentary trusts, asset transfers to younger generations, life insurance trusts, family partnerships and estate freezes.

Protecting client assets

Testamentary trusts, on the other hand, are established at death; they spring out of the last will and testament.

The John Wayne problem and the Bing Crosby solution. Bing Crosby knew what John Wayne didn't - that a living trust can preserve your privacy and reduce fees and taxes at the time of your death

(Only Section 678 trusts, certain grantor trusts, certain testamentary trusts and trusts that meet the definition of a qualified sub-chapter S trust are permitted to hold S corporation stock.)

Estate planning for S corporation shareholders

For estate planners, the simplicity of testamentary trusts makes them ideal for younger clients.