When does a testamentary trust come into effect?

A testamentary trust is a type of trust that is established according to the instructions outlined in a will. It does not take effect until the testator, the person who created the will, passes away. This is essential since the trust's purpose is to manage and distribute the assets of the deceased based on their wishes as laid out in the will.

When the testator dies, the testamentary trust is activated, and the appointed trustee is responsible for administering the trust's assets according to the terms specified in the will. This is an important distinction from other types of trusts, such as living trusts, which are created and effective during the grantor's lifetime.

The timing of a testamentary trust is crucial because it is directly tied to the testator's death and reflects the individual's decisions regarding the management of their estate after their passing.