What is a Testamentary Trust?
A Testamentary Trust is a legal arrangement established through a person's Last Will and Testament or Trust. It specifies how and when assets will be distributed to named beneficiaries. This is commonly used by individuals with young children, allowing assets to be distributed once a child reaches an age you designate.
Learn more: Is a Testamentary Trust Right for You?
Does Trust & Will Provide Testamentary Trusts?
Yes. Trust & Will includes testamentary trust provisions in both our Will-based and Trust-based plans. By selecting age-based conditions for any of your distributions, a Testamentary Trust clause is automatically added to your Last Will & Testament or Trust. If you don't add any age conditions, a Testamentary Trust will not be generated in your final documents.
How Distributions Work
- Distributions are age-based only. You must choose either one minimum age or three specific ages at which a beneficiary receives their distribution — these are the only two options. Monthly, annual, or other recurring/periodic distributions are not supported at this time.
- Distribution amounts are split equally. If you choose three ages, the beneficiary receives 1/3 of their distribution at each age.
- You cannot customize the amount distributed at each age — the split is always equal.
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The age represents the minimum age a beneficiary must reach before receiving that portion of their distribution:
- If the beneficiary has already passed that age at the time of your passing, they'll receive their distribution right away.
- If they haven't yet reached that age, their distribution will be held until they do.
How to Add a Testamentary Trust to Your Estate Plan
Adding age conditions to your distributions is what integrates Testamentary Trust provisions into your Will or Trust. You can do this during initial setup or by editing your plan later.
- While filling out the Estate Plan questionnaire, or editing the 'Distributions' section, you'll be prompted about beneficiary distributions.
- Select either "at a minimum age" or "at specific ages (three)" to set conditions based on the beneficiary's age.