As part of my estate planning practice, I often draft wills that include testamentary trusts for one or more of the will-maker’s beneficiaries. The use of testamentary trusts isn’t novel but there’s been an increase in the number of inquiries I receive on the topic. To clear up some of the confusion, let me answer some of the most popular questions I receive:

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1. My children/grandchildren/godchildren/nieces or nephews are too young to control an inheritance on their own, is there anything I can do?
2. I’m divorced and I don’t want my ex to have any influence/control over my child’s inheritance, is there anything I can do?
3. I’m not sure the beneficiary can handle an infusion of cash, is there anything I can do?
4. I’d like the inheritance to be received at certain intervals, is there anything I can do?
5. I have a specific purpose in mind for this gift, is there anything I can do?

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The answer to all these questions is yes, testamentary trusts. It’s a misconception that trusts are for the ultra-rich. The popularization of trusts funds in US dramas hasn’t helped with the confusion. Trusts can be for everyone!

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A trust is simply a relationship among the settlor (the person that creates the trust), the trustee (the person that manages the trust) and the beneficiaries (the persons that benefit from the trust). Trusts come in all different shapes and sizes. And testamentary trusts, being a trust that takes effect on death, is a type of a trust. It’s a relatively simple structure to a knowledgeable lawyer but outside the scope of a notary’s practice. A testamentary trust is often no more than a page long in a Will and can be used to address a myriad of concerns, including those articulated above.

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Most of the wills I draft for will-maker’s include one or more testamentary trusts. The terms of the testamentary trusts are up to the will-maker. How much cash will be set aside? Up to the will-maker. Who will be the trustee and in charge of the fund? Whomever the will-maker decides. When does the beneficiary ultimately take control of their inheritance? Up to the will-maker. Testamentary trusts give the will-maker the chance to control how and when an inheritance is received. This often gives clients of mine much more peace than “hoping for the best”.

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If your estate plan could benefit from the use of testamentary trusts (and it probably could), a skilled wills, estates and trusts lawyer can help. An experienced lawyer will help craft a will that includes your intended beneficiaries while also addressing your major concerns.

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