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 ?
To illustrate these issues, consider a typical trust formed under a will for an heir, for example, a parent's will setting up a testamentary trust for a child.
It should be noted that a testamentary trust may be named as the beneficiary of a life insurance policy on the life of the testator.
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.
* Testamentary Trust: a trust created after the grantor's death according to the provisions of the deceased's last will and testament.
Those factors can make a testamentary trust, one set up in the decedent's will, a useful choice.
Historically, most trusts--especially testamentary trusts created under a will upon death--have been formed in one's home state.
Currently, estates and other trusts created in a will (known as testamentary trusts) pay tax on their income at the same graduated rates as individuals.
Trusts can be adjustable or permanent, written to spring into effectiveness during your lifetime (Living Trusts) or after you die (Testamentary Trusts).
Two-year rule trust: Two-year rule trusts are testamentary trusts or living trusts that receive distributions from the grantor's estate after December 31, 1996, under pour-over wills and can hold S corporation stock for up to two years, even if they are not otherwise eligible shareholders.
For an inter vivos trust, when the trust became irrevocable or for testamentary trusts, the state is where the testator was domiciled at death.
[section] 732.603 which applies to testamentary trusts.
Nikko will handle testamentary trusts and inherited property management for its customers on behalf of the trust bank.