What term describes a will that sets up a trust for beneficiaries upon death?

What term describes a will that sets up a trust for beneficiaries upon death?

• A. Testamentary Trust Will
• B. Wills
• C. Simple Will
• D. Living Will

Answer: (A)

A will that creates a trust to manage assets for beneficiaries after death is a testamentary trust. This type of trust is built into the will and only comes into existence when the person dies, with the estate assets funding the trust and a trustee handling distributions according to the terms. This differs from a living will, which is about medical decisions during incapacity, and from a simple or generic will, which may not establish a trust at all or may simply leave assets outright. So the term that describes this setup is a testamentary trust will.

A will that creates a trust to manage assets for beneficiaries after death is a testamentary trust. This type of trust is built into the will and only comes into existence when the person dies, with the estate assets funding the trust and a trustee handling distributions according to the terms. This differs from a living will, which is about medical decisions during incapacity, and from a simple or generic will, which may not establish a trust at all or may simply leave assets outright. So the term that describes this setup is a testamentary trust will.