Testamentary Trust Law and Legal Definition
A testamentary trust is a legal entity created as specified in a person's will which takes effect when the settlor dies. It is a trust created by the terms of a will. Testamentary trusts are mostly created to protect minor children or a relative with disabilities who will inherit large sums of money disbursed at the person's death. Usually trustees are appointed in the will to direct the trust until a set time when the trust expires, like when minor beneficiaries reach a specified age or achieve a specified matrimonial status. Depending upon the number of years for which the trustee must act for a testamentary trust, s/he will need to go to probate court and have the trust regularly checked over by the courts.
Testamentary trusts are also known as will trust.
