Testamentary Trust in Alabama
What is a Testamentary Trust?
A Testamentary trust is a type of trust created within a person’s Last Will and Testament. This type of trust becomes a valid entity after the person, or “settlor”, passes away and a probate estate has been opened. If a person wishes to bypass probate, they will be unable to do so if a Testamentary trust is involved.
What’s the purpose of choosing a Testamentary Trust if I have to go through probate?
Contrary to what you might have read online in the past, probate is not the end of the world, nor is it anywhere close to it. Excellent reasons exist for choosing an estate plan that bypasses probate. On the other hand, excellent reasons exist for choosing an estate plan that requires probate. Different situations and circumstances specific to each case determine which option is the best fit.
Things to know about this type of Trust:
- This type of trust could be created if the Settlor does not want to leave behind any property to the beneficiaries until he passed away.
- Trustee management is not required during the Settlor’s lifetime. Because of this, this type of trust is often less expensive than a living trust.
- This type of trust can be a good option for beneficiaries who do not have an immediate financial need to access the trust fund.
- Judicial oversight is available during pendency of the probate case.
Schedule an Estate Planning Consultation with a Spanish Fort, Alabama Attorney
Whether you reside in Spanish Fort, Daphne, Fairhope, Gulf Shores or anywhere else in Baldwin or Mobile Counties, Brennan R. Clifton, Attorney at Law, will assist you in developing an estate plan that is right for you. Our firm believes that getting to know our clients and asking lots of questions is the cornerstone in providing our clients with exceptional legal services.
Call or text us at 251-422-6417 to find out more about how our firm can assist you with your estate planning goals.