testamentary trust

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Testamentary trust

A trust created by a will, that is scheduled to occur after the maker's death.

Testamentary Trust

A trust created in a will. A testamentary trust is considered part of an estate and is therefore subject to estate taxes, if any. However, a testamentary trust is useful if the deceased has minor children whose assets need to be managed before they reach maturity. The trustee of the testamentary trust does this on behalf of the estate.

testamentary trust

A trust created by a person's will, thereby not effective until the death of the testator. Testamentary trusts are used chiefly by wealthy individuals who are concerned about their beneficiaries' ability to administer large amounts of assets.

testamentary trust

A trust created by one's last will and testament.

References in periodicals archive ?
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.
Total Affluent: Households with $100,000 + income and/or net worth of $500,000, excluding principal residence Any Trust Account 36% Revocable Living Trust 21% Testamentary Trust 15% Insurance-Funded Trust 8% Charitable Trust 5% Other Trusts 8% Custody Account 5% Wealth: Households with $1 million+ in investible assets Any Trust Account 59% Revocable Living Trust 37% Testamentary Trust 7% Insurance-Funded Trust 17% Charitable Trust 9% Other Trusts 15% Custody Account 9% Source: Spectrem Group, 1999
Along with applying the top tax rate to testamentary trusts and estates after 36 months, Finance proposes to change the way some other tax rules apply to trusts as well.
Kennedy's will creates two testamentary trusts, both of which will terminate at the death of Mrs.
Previously vice president and trust officer at University Bank & Trust in Palo Alto, Colgan will be responsible for administering personal trust accounts at CNB&T, including living and testamentary trusts, conservatorships, estates, and agency accounts.
In addition, regulations on qualified Subchapter S trust (QSST) elections for testamentary trusts were finalized.
Previously vice president and senior trust officer at University Bank & Trust in Palo Alto, Howell will be responsible for administering personal trust accounts at CNB&T, including living and testamentary trusts, conservatorships, estates, and agency accounts.
Treasury also issued proposed regulations (53) on the QSST election for testamentary trusts.
If the stock were transferred from the estate to a testamentary trust (rather than directly to the surviving spouse), an additional shareholder would be created and could eventually jeopardize the S election, because testamentary trusts are permitted as S shareholders for only a two-year period.
A new proposed regulation provides guidance on qualified subchapter S trust (QSST) elections for testamentary trusts under Sec.
The differences between inter vivos and testamentary trusts need to be examined; the most significant difference is the cost to the NRBs.