This is a trust that you include in your will and takes effect when you die. It basically means that incase of your death one person who you appoint will take care of the wealth that you leave behind for your beneficiaries. This can only happen when you write a will and state in writing who is in charge and the terms under which they will mange your wealth. The testamentary trust has three parts.
Firstly is the individual who drafts down the trust and is referred to as the Grantor, Settlor or Trustor. Secondly is the trustee who is delegated the charge of ensuring the terms included within the trust are adhered to and lastly is the beneficiary who are the ones to get the wealth left behind.
Before you decide to have this kind of trust, you should get estate planning advice from your accountant to get all the necessary information. This includes the advantages to setting it up depending on your financial situation and your family set up. One of the advantages that attract people to them is the fact that your family will not have to deal with any creditors or litigation incase of any professional negligence claims that maybe made after your death.
Before conducting will trust, it is important to be aware that there are some costs that come with the practice. Normally, there are some administrative fee that is payable so as to maintain the trust. Some fee may be chargeable for the accounting services offered in the process which would otherwise be helpful in making trust taxation returns.
Expenses will be charged upon the accounting services that will be necessary in the drafting of the trust taxation returns that’s why the necessity of ensuring the income of your estate is sufficient to necessitate a testamentary trust. In cases of doubt, one can opt to include it as an option in one’s will so as the trustee has the option to decide on necessity basis.
The person that you choose as a trustee can be your partner, the person who executes your will or your children. This person will have complete control of the trust therefore make sure that you know the person well. The trustee should also be trustworthy enough to have the best interests of the beneficiaries. You can have a variety of trusts and have different trustees for each of them. Get a testamentary trust today and make sure that your wealth goes to the right people once you are dead.
