What is a Testamentary Trust?
A testamentary trust is a trust established by a will. It does not come into effect until after the death of the person making the will, referred to as the testator (male) or testatrix (female).
Upon the death of the testator or testatrix, property of the deceased estate is transferred to a trustee who holds the assets on trust for the benefit of the beneficiaries of the trust. Testamentary trusts have considerable taxation and other financial planning advantages as compared with a discretionary family trust, or an estate with no trust structure in place. The potential benefits of a testamentary trust are as follows: