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.
are established under a person's will and have no effect until the testator's death and the probate of the will.
Illinois and Pennsylvania will tax the fiduciary income of a trust if the sole connection to the trust is a resident testator in the case of a testamentary trust
, or a resident settlor in the case of a living trust.
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., and will require the simple process of probate.
allow for various distribution schedules.
* Testamentary Trust
: a trust created after the grantor's death according to the provisions of the deceased's last will and testament.
Estates, testamentary trusts
and unincorporated businesses may have a non-calendar fiscal year-end (i.e., January 31st).
Those factors can make a testamentary trust
, one set up in the decedent's will, a useful choice.
Newcome Testamentary Trust
, 9.77 percent worth $2.1 million;
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?