Your last will and testament may include the creation
of a trust upon your death under certain conditions.
This type of trust is often used when your beneficiaries include persons who may be under the age of eighteen (18) at the time of distribution. It is possible for you to direct in your Last Will and testament that distribution not be made to your children until age twenty-five (25) or older. You may name a person or financial institution to act as Trustee to hold the distribution for the benefit of said persons, and to manage said assets until they reach the age you specify, at which time distribution will be made to them. The Trustee may also decide when or if payments may be made from the trust to provide for the health, education, maintenance, and support of the Trust beneficiary after you death, but before the age at which you have directed distribution.
The creation of a Testamentary Trust may also be conditioned on certain events, such as:
I leave all of my estate to my wife, but in the event that my wife does not survive me, then I direct that my estate be distributed to my children equally, but in the event that any of my children shall not have reached the age of twenty-five (25) years of age, then I direct that their share be distributed to my Trustee named herein to hold until their twenty-fifth (25th) birthday.
You may also designate the Trustee of your Testamentary Trust as a beneficiary on any life insurance, retirement plan, or other benefit plan, thereby avoiding probate as to that asset.
A Testamentary Trust is an effective tool for young families to protect and provide for their children.