Testamentary trust is usually included in one’s will and takes effect upon one’s passing on. Here the law stipulates that upon the application of a testamentary trust, the person entrusted by the owner of the will, shall be responsible of running and taking care of his/her wealth on behalf of the charged beneficiaries. This is only possible when you write a will stating in writing the person you leave in charge and terms under which they are to run your wealth. Testamentary trust has three parts.
The first part is the individual who makes the trust usually referred to as a Grantor, Trustor or Settlor. The second part is the Trustee who is left in charge of making sure the terms included in the trust are followed. The last part of a trust is the beneficiaries who get the wealth that you leave behind when you die.
Before drafting such a trust, one should get estate planning advice from their accountant so as to be furnished with all the information on the kind of trust he/she is setting up. Here one shall be guided on the advantages that such a trust may offer depending on the financial position one is in and the general family set up.
Before conducting will trust, it is important to be aware that there are some costs that come with the practice. Normally, there are some administrative fee that is payable so as to maintain the trust. Some fee may be chargeable for the accounting services offered in the process which would otherwise be helpful in making trust taxation returns.
Make sure that the income that your estate makes is adequate enough to necessitate a testamentary trust. In case you are not sure about this, you can include it as an option in your will so that the trustee will make the decision whether it is necessary or not.
The person that you choose as a trustee can be your partner, the person who executes your will or your children. This person will have complete control of the trust therefore make sure that you know the person well. The trustee should also be trustworthy enough to have the best interests of the beneficiaries. You can have a variety of trusts and have different trustees for each of them. Get a testamentary trust today and make sure that your wealth goes to the right people once you are dead.
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