Who might benefit from a testamentary trust?

A testamentary trust is a trust that is created through a will and takes effect upon the death of the person who created it. This kind of trust is designed to manage and distribute the deceased's assets according to their wishes as specified in the will. The beneficiaries named in the will, who generally are the individuals chosen by the deceased to inherit certain assets or receive financial support, directly benefit from the testamentary trust. The trust serves to protect the assets until the beneficiaries reach a certain age or fulfill specific conditions, thereby ensuring that their inheritance is managed appropriately and can provide them with financial support or resources over time.

While minor children might also benefit from a testamentary trust, the scope is broader than just that demographic. Individuals with no dependents or trustees managing living trusts may not find direct benefit in a testamentary trust since these entities do not rely on a will for distribution upon death. The unique structure of a testamentary trust aligns closely with the intentions of the individuals named in the will, providing them a clear advantage in terms of asset management and protection.