• A testamentary trust is a trust that must contain some or all of the assets of the deceased as specified in the person’s last will and testament.
  • A testamentary trust is not created until the person dies, in which the executor settles the property as specified in the will.
  • A testamentary trust can designate minors as beneficiaries, in which the assets of the deceased are paid only when they reach a certain age.
  • A trust can also be used to reduce inheritance tax liability and ensure professional asset management.
  • The disadvantage of a testamentary trust is that it does not allow you to avoid a will - the legal process of distributing assets through the courts.