A testamentary trust takes effect only after the grantor’s death, unlike a living trust which is active during a grantor’s lifetime. Key benefits of a testamentary trust include the ability to maintain exclusive control over how and when assets are distributed to beneficiaries, such as minor children or grandchildren. This allows the grantor to specify the timing of asset disbursement, such as at a certain age, upon graduation or when purchasing a home.

Testamentary trusts are tailored for each client to ensure proper asset management and shield assets from beneficiaries’ creditors. A trustee is designated to manage funds and assets. These trusts can be set up to provide finances to the guardian of a special needs beneficiary or be designated by the grantor for education, healthcare or other specific purposes as outlined in the trust.

By structuring a testamentary trust, younger beneficiaries who may not be experienced with assets will be protected from frivolous spending. Rather than getting full access to funds immediately, the trustee is the asset manager until a beneficiary is deemed mature enough. Overall, a testamentary trust provides the grantor greater control and flexibility in transferring wealth to their intended heirs.