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 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.
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.
Testamentary trusts 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;
Tenders are invited for Collector Treasurer - Investment Consulting Services For Testamentary Trust Funds
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?