Testamentary Trusts Explained

A testamentary trust is a trust established after a person dies to hold assets for the benefit of the beneficiary. Instead of receiving assets directly from the estate in their own name, the assets go into a testamentary trust on behalf of the beneficiary.

This may be beneficial as it can allow for greater control of assets when they’re distributed to beneficiaries. It can also provide taxation advantages and protect the assets in certain situations.