Shutt Law Firm’s estate planning attorney assists clients with all manner of Texas testamentary trusts. A testamentary trust is a trust that is created within the client’s Last Will and Testament. This means a testamentary trust doesn’t start operating until after the client’s death.
A testamentary trust springs into action upon the client’s death. Testamentary trusts are contained within the Last Will and Testament. The testamentary trust can be amended or revoked any time before the client’s death. However, after the client passes away, the testamentary trust becomes irrevocable and generally cannot be amended.
Testamentary trusts are commonly used to provide for minor children (or other young beneficiaries), to avoid an estate tax or inheritance tax, or to manage how the estate property will be distributed upon death. There are many variations of testamentary trust, and they are customized for each client’s estate planning objectives. A Texas testamentary trust is useful in customizing how a minor child receives his inheritance. For example, many clients want the minor child’s guardian to have access to the minor child’s trust assets to ensure that the minor beneficiary has his needs met. As such, the trustee of the child’s trust can use the trust assets for the payment of reasonable expenses, such as college tuition.