A testamentary trust is a specific type of trust that takes effect after the trustmaker or grantor passes away. As such, these trusts are irrevocable trusts, and they typically are detailed as part of a will. While there are some specific advantages to creating these types of trusts, they may not be the best choice for all situations or circumstances.
When you need help developing a testamentary trust, contact the experienced Denver trust and estate planning lawyers at JR Phillips & Associates, PC.
Therefore, it’s best to consult with the Denver trust and estate planning lawyers at JR Phillips & Associates to discuss your needs and wishes and to determine whether testamentary trusts or another option may be the best choice for your and your family.
Testamentary trusts are often used when children are the beneficiaries – Because minors cannot directly receive the proceeds from a will or inheritance, testamentary trusts are often set up in wills on behalf of minors in order to pass down assets to children or other minor relatives. Generally, the appointed trustee will only continue to manage to the testamentary trust on behalf of the minor until he reaches the age of 25 (or some other specific age or milestone as set forth by the trust).Testamentary trusts may also be set up on behalf of disabled loved ones in order to provide these loved ones with financial support from the trust’s assets while not negating their eligibility for essential government benefits.
Testamentary trusts are required to go through probate – Unlike other living trusts that may avoid probate, testamentary trusts must go through this court-supervised process. Additionally, it’s possible that, after probate has been concluded, the probate court will continue to check in on the administration of the testamentary trust from time to time.
Testamentary trusts often include life insurance proceeds – Although any number of different situations may make it beneficial for a person to set up a testamentary trust for his loved ones, having a life insurance policy with a substantial payout is one of the more common situations in which setting up this type of trust is generally a smart idea. Among other reasons, this is because there can be significant tax breaks to having the proceeds from a life insurance policy enter directly into the trust upon the passing of a person.
Various other circumstances, financial situations and needs can make having testamentary trusts as part of an estate plan a good idea. You are encouraged to contact JR Phillips & Associates, PC for more information about testamentary trusts and your best estate planning options.
When you are considering developing a testamentary trust or need any assistance with estate planning, you can turn to the trust and estate planning lawyers at JR Phillips & Associates, PC. We provide a thoughtful, comprehensive approach to our clients’ estate planning and elder law needs, and we are dedicated to helping each of our clients and their families find the best solutions for them.
While this means that we provide personalized attention at every step of the process, it also means that our clients can rely on our Denver estate planning attorneys to always be competent, caring and professional while providing them with the highest quality of legal services at affordable rates.