Testamentary trusts are created through wills and do not come into existence until the grantor, or creator, has passed away. Upon the grantor's death, money and properties are funneled into the testamentary trust — per the terms of the will — where they are managed by a trustee for the benefit of the trust beneficiaries.
Waiting to create a trust until after your death allows you to retain control of your assets during your life time while still reaping many of the benefits afforded by a trust.
Located in Everett, Washington, the lawyers at Cogdill Nichols Rein Wartelle Andrews (CNRWA) help clients throughout the Seattle area protect their assets and care for their families through comprehensive estate plans.
What Are The Benefits Of A Testamentary Trust?
Testamentary trusts offer many benefits. Chief among these are avoiding probate and providing grantors the ability to exercise control over their properties after they are gone.
- Avoid probate: The probate process can be complex, time-consuming and expensive. Placing all of your assets into a testamentary trust will avoid the process altogether and reduce stress on your surviving family members.
- Control: Grantors can write terms into the trust documents that govern the manner in which property is used and distributed to beneficiaries. These terms can be particularly helpful when grantors want to ensure legacy properties stay in the family or feel their beneficiaries — especially minor children or young adults — need a responsible party — the trustee — to manage money on their behalf.
Additional benefits include:
- Beneficial tax treatment
- Providing for a special needs child
- Protect assets from depletion
- Safeguard trust property against creditors of the beneficiaries
Choosing A Testamentary Trust That Fits Your Needs
There are many different types of testamentary trusts. At CNRWA, our attorneys will recommend a testamentary trust that fits your specific estate planning goals. We work closely with clients of all ages and financial circumstances to develop estate plans containing wills, testamentary trusts and other planning tools that help protect their properties and their families.
To schedule a consultation, please contact our law office at 425-259-6111. Together, we will develop an estate plan that is right for you.