{"id":3270,"date":"2026-04-02T12:00:00","date_gmt":"2026-04-02T16:00:00","guid":{"rendered":"https:\/\/www.uslegalwills.com\/blog\/?p=3270"},"modified":"2026-06-09T13:43:42","modified_gmt":"2026-06-09T17:43:42","slug":"testamentary-trusts","status":"publish","type":"post","link":"https:\/\/www.uslegalwills.com\/blog\/testamentary-trusts\/","title":{"rendered":"Testamentary Trusts – what are they and how are they created?"},"content":{"rendered":"\n

Originally published: May 9, 2024 | Last updated: April 2, 2026<\/p>\n\n\n\n

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TL;DR:<\/strong> A testamentary trust forms through your Will to start functioning after you pass away. The three main types of trusts consist of trusts which safeguard minor beneficiaries’ assets until they become adults and pet trusts which provide ongoing financial support for animal care and lifetime interest trusts which protect children’s inheritances within family structures that include multiple spouses. You can add all three to your Will at USLegalWills.com for $49.95 without any additional charges for complicated trust structures. The creation of testamentary trusts does not need legal assistance because living trusts need lawyers to establish them.<\/p>\n<\/div><\/div>\n\n\n\n

\"Testamentary
Understanding the different types of trusts is essential for effective estate planning<\/figcaption><\/figure>\n\n\n\n

People understand the importance of having a Will but they receive advice to establish a Trust as well. The relationship between Wills and Trusts can be confusing because the word \u201cTrust\u201d describes several very different things.<\/p>\n\n\n\n

What Is a Trust?<\/h2>\n\n\n\n

A trust functions as a legal system which enables someone to control assets that belong to another individual. Every trust involves three roles:<\/p>\n\n\n\n

Role<\/th>Also Known As<\/th>Function<\/th><\/tr><\/thead>
Grantor<\/td>Donor, Settlor, Trustor, Trustmaker<\/td>The person who creates and funds the trust<\/td><\/tr>
Trustee<\/td> – <\/td>The person who manages the trust assets<\/td><\/tr>
Beneficiary<\/td> – <\/td>The person who receives the benefit<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The most typical testamentary trust works by having you (the grantor) name your 12-year-old child as your estate beneficiary in your Will but your Trustee manages the assets until your child becomes an adult.<\/p>\n\n\n\n

What Is the Difference Between a Living Trust and a Testamentary Trust?<\/h2>\n\n\n\n
Feature<\/th>Living Trust<\/th>Testamentary Trust<\/th><\/tr><\/thead>
When created<\/td>While you are alive<\/td>Through your Will, after death<\/td><\/tr>
Type<\/td>Revocable or irrevocable<\/td>Described in Will instructions<\/td><\/tr>
Primary purpose<\/td>Avoid probate fees<\/td>Protect beneficiaries’ inheritance<\/td><\/tr>
Complexity<\/td>High – requires managing assets in\/out<\/td>Low – included as part of your Will<\/td><\/tr>
Professional help needed<\/td>Usually requires an attorney<\/td>Can be done online<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

A Living Trust serves as an estate planning tool which allows you to transfer assets beyond what your Will covers so that these assets can reach beneficiaries without needing probate court involvement. The process of establishing this trust becomes difficult because it needs legal help from a lawyer. Your Will contains instructions to establish a Testamentary Trust which your Executor must create after you die to benefit your designated beneficiary.<\/p>\n\n\n\n

How Do I Create a Testamentary Trust?<\/h2>\n\n\n\n

The process of creating a testamentary trust exists as a simple task:<\/p>\n\n\n\n

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  1. Prepare a Will<\/strong> – either with an estate planning attorney or an online service like USLegalWills.com<\/a><\/li>\n\n\n\n
  2. The Will service helps you through the process of choosing a Trustee while you establish your trust rules.<\/li>\n\n\n\n
  3. After your death<\/strong>, your Executor works with a financial institution to set up the trust according to your Will’s instructions<\/li>\n\n\n\n
  4. The Trustee will distribute funds to beneficiaries through your specified terms.<\/li>\n<\/ol>\n\n\n\n

    USLegalWills.com lets you create testamentary trust provisions during the Will writing process at no extra charge because the system automatically creates trusts for you.<\/p>\n\n\n\n

    What Types of Testamentary Trust Are Available at USLegalWills.com?<\/h2>\n\n\n\n

    Trust for a Minor Beneficiary<\/h3>\n\n\n\n
    \"Trusts
    USLegalWills.com allows you to set up trusts for minor beneficiaries with flexible age distributions<\/figcaption><\/figure>\n\n\n\n

    The law forbids you from giving a minor child direct access to inheritance funds because you need to protect their financial security. The inheritance needs to exist as a trust which a Trustee must oversee to support the child’s development until they become an adult. A trust needs to exist for a young child even when there is no trust mentioned in your Will.<\/p>\n\n\n\n

    Your Will lets you maintain essential authority through the process of trust instruction addition.<\/p>\n\n\n\n