Trust

Testamentary Trusts are created after your death, by the terms of your will. The assets to fund a testamentary trust usually go through probate. A common example of a testamentary trust is one created by a parent leaving assets to a child. The testamentary trust is administered by a trustee until the child reaches a stated age, at which point the assets are then transferred to the child.

Creating trust for minor children allows you to set rules for the use of your assets. For example, you can dictate that a child can access the funds only after they reach a certain age. Until your child reaches the designated age, the named trustee could be allowed to use funds in the trust to pay for your childrens health care, education, or upbringing. You could also, for example, stipulate that certain funds could only be used for college tuition payments.