A trusts attorney in Broadway North Carolina discusses a person’s estate plans and final wishes to determine the appropriate type of financial tools to put into place. In some instances, a trusts attorney in Broadway North Carolina may recommend a testamentary trust.
A testamentary trust is a trust that is part of your last will and testament. It provides for the distribution of the estate according to particular instructions. Testamentary trusts are ideal for individuals who do not have complicated estates and who do not want to deal with the administrative expenses related to handling a living trust.
A testamentary trust becomes effective at the time of death and provides specific instructions regarding the trust assets. In this manner, a testamentary trust allows for arrangements and conditions that could not be made through a simple will.
In many cases, a testamentary trust is established for the benefit of a minor child. It often includes life insurance proceeds. If the settlor dies, the testamentary trust allows the appointed trustee to carry out the wishes of the trust. The settlor establishes the use of trust funds and other directives within the trust document. He or she names a trustworthy individual who will carry out these duties, called the trustee.
In addition to use for minor children, testamentary trusts may also be used to provide for a relative with special needs. They can also be used for anyone who stands to inherit a large sum of money upon the settlor’s death or any other individual who may benefit from their use.