In New York, many people view estate planning as either having a will or a trust. The choice is often based on which is deemed better for their situation. The easiest estate planning document to use is a will. However, people with more complicated circumstances could want to establish a trust.

But in some instances, the individual wants a combination of both. A testamentary trust could be useful for people who want to maintain a semblance of control over how assets are distributed. It will also be a protective device over the assets. There are other benefits. But before moving forward with this type of estate plan, it is vital to have help with deciding if it is the wisest option.

How does a testamentary trust work?

The testamentary trust is part of the will. It will go into effect after the person has died and the will has gone through probate. This is an important distinction because many people choose a trust instead of a will specifically to avoid probate.

Still, the testamentary trust gives the testator substantial benefits of both a will and a trust. They can control how the assets will be distributed. If, for example, the heir is under 18 or is not of sufficient maturity to handle the new responsibilities regardless of their age, then the trust can distribute them through a trustee. It can also be used for those who have special needs and even for pets.

The testator will select a trustee to oversee the assets. It should be a person who will adhere to the testator’s objectives and understand their goals. A key part of a testamentary trust is that the testator can update it as needed. It is also easier than a creating a trust.

Experienced advice can help with creating the ideal estate plan

Whether to use a will or trust is up to the individual and how they want to distribute their assets. Myriad factors will be considered as they decide what best suits their needs. A testamentary trust might be beneficial, but it is not necessarily for everyone. For guidance, it is important to have advice from experienced professionals who understand all areas of estate planning.