how to create a testamentary trust
there are many online resources one can use to create your own testamentary trust however these documents can become complicated and inexperienced individuals may not fully understand the implications of the trust they are creating if prepared incorrectly there may be legal repercussions in the future to best make sure the testamentary trust meets your state s regulatory requirements work with a lawyer on drawing up testamentary trust documents in addition this ensures appropriate legal discourse is written to ensure your assets are appropriately distributed to create the actual testamentary trust the settlor must select the trustee and the beneficiary then the settlor selects which assets are to be placed in the trust this also includes the specification of how and when these assets are disbursed to the beneficiary this information is communicated to the beneficiary in the last will and testament when the settlor passes the will passes through probate court as mentioned above after the probate process is completed the trust is created and the funds can be disbursed example of a testamentary trustconsider that a benefactor established a testamentary trust for a beneficiary under the terms of the trust they will receive half of the assets at age 35 and the second half at age 55 let s say the benefactor is leaving 200 000 to a beneficiary setting up a testamentary trust helps ensure a level of financial oversight preventing the beneficiary from impulsive expenditures at an early age consider another example where the deceased trustor has created a testamentary trust for their spouse who is a medicaid applicant assets in the testamentary trust may be used to pay for medical expenses that are not covered under medicaid such as specialist evaluation special equipment or additional therapy under a testamentary trust the value of assets will not factor into the spouse s medicaid eligibility 