Trust That You Will Not Go Wrong With a Testamentary Trust
A testamentary trust is a trust that is created through a person’s last will and testament upon their death. People usually include these types of testamentary trusts in their wills because they have a minor beneficiary who will not in law be able to take possession of the bequests the testator wants to bequeath to them.
The testator then bequeaths the assets to the trust with the minor as the beneficiary and states at what age the beneficiary may take possession of the bequests made to them. The age usually ranges from 18 to 25 years. If such trust was created and all the beneficiaries are older than 18, the provision in the will calling for the trust will merely be ignored.
Trustees are appointed in the will as well and these individuals are responsible to manage the affairs of the trust. The trustees cannot be beneficiaries as well as the trustees. The will can make provision for specific powers that the trustees may have in managing the trust, such as investing any money that forms part of the trust or collecting interest on the assets in the trust. The trustees have to always act in the interest of the trust and the beneficiaries and may not use the assets in the trust for their own gain.
A testamentary trust is a safe and certain way to ensure that your loved ones, who are not yet 18 years of age at the time of your passing, receive the bequests that you wish to make to them. Trust that you will not go wrong with a testamentary trust!
TARIEN VAN DYK – LLB (UP)