Coming up with an estate plan in California is an essential part of planning for the end of your life and managing your assets so that the recipients of your estate receive the portion that you intended for them. Requesting that a testamentary trust be set up after your death is one way to set up your will.
What a testamentary trust is
A testamentary trust is a trust that’s set up after your death in accordance with the instructions in your will and is one of several types of estate planning. One of the advantages of a testamentary trust is that it can make specifications that a beneficiary can only receive the inheritance upon their death. Additionally, the will can be modified at any time, which is not the case with an irrevocable trust.
A testamentary trust is also often a smart idea for young parents because people who are younger often don’t have as much money or assets, and trusts are more expensive to set up than wills. When you request a testamentary trust in your will, the cost of setting up the trust will come out of the estate upon both parents’ deaths, so they don’t have to come up with the money when they’re young.
One of the biggest disadvantages of a testamentary trust is that it doesn’t avoid probate, which can take months and allows the details to become a public record. Additionally, if there were details that weren’t clarified when the decedent was alive, the trust might not be written properly, and the decedent’s wishes might not be properly carried through.
Basics of estate planning
Setting up a testamentary trust in a will is one route that you could take. But when you’re planning your estate, you should have a more comprehensive understanding of your options. For instance, you should understand the advantages and disadvantages of a living will, a trust, and other options.
When you’re estate planning, a testamentary trust is one of many options, but take the time to understand all of your options so that you choose one that works with your current situation.