What are some challenges of creating a testamentary trust?

On Behalf of | Jan 23, 2023 | Estate Planning, Trusts | 0 comments

If you wish to create a trust for your family, you do not have to make one right away. You can use your will to form a testamentary trust after your death. This allows you to change your trust as many times as you want by updating your will.

While a testamentary trust can be of benefit, it does not come without potential problems. Smart Asset explains some possible challenges that come with creating this kind of trust.

The trustee might not want the position

It is possible your trustee choice may not desire the responsibility of overseeing your trust. If he or she refuses, a court could appoint someone else to head your trust, somebody of whom you might not approve. Which is why it is good to name at least one contingent trustee. Discussing your wishes with your trustee candidates ahead of time could tell you whether or not another person would be a better choice.

The trustee may have questions

Giving your trustee a thorough explanation of how to run your trust is important. Otherwise, your trustee might struggle with running your trust. After your death, you are no longer available to provide insight, leaving your trustee to guess your intentions.  However, your trustee can get assistance from your attorney on the process.

Some families create a revocable trust instead of relying on a testamentary trust. It is best to discuss these options with your attorney to make an appropriate plan for your family.

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