Testamentary Trust: Supporting Your Children Beyond the Grave

Many parents ask the difficult question:
“What will happen to my children if I pass away tomorrow?”

The answer lies in the question itself: WILL.

Your Will is your most important final instruction. It is your legal voice once you are no longer here. It ensures that your wishes are respected and, most importantly, that your children are protected and supported even in your absence.

To continue supporting your children after death, your Will must be properly structured and executable. Here's how:

1. Appoint a Legal Guardian

Appoint a trusted person in your Will to take legal responsibility for your children. Without a guardian formally named, the decision may be left to the courts, leading to uncertainty and family disputes.

2. Establish a Testamentary Trust

A testamentary trust allows you to safeguard your children’s inheritance and provide structured, long-term financial support.

What Is a Testamentary Trust?

A testamentary trust is created through the instructions in your Last Will and Testament and only comes into effect upon your death. It holds and manages your assets on behalf of your children or other beneficiaries, especially if they are minors.

Advantages of a Testamentary Trust:

• Asset protection and control on behalf of your children’s benefit.
• Avoid the Guardian’s Fund by any means possible. The testamentary trust will help you avoid the guardian fund appointed by the courts on behalf of your children. The guardian's fund can be slow and reserved at times.
• Cost-Effective setup after your death, for any unfortunate event that may or may not occur.

Disadvantages of a Testamentary Trust:

• Your testamentary trust will be Irrevocable Upon your death. Once you pass, the terms of the trust cannot be changed.
• Your estate must still go through the legal estate administration (probate process).
• Planning is essential to ensure your Will is up to date and that adequate financial provisions exist to administer the trust and your estate.

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By working with an experienced estate planning attorney, you can:

1. Ensure your children are cared for by the people you trust.

1. Protect your children’s financial future.
2. Avoid unnecessary delays or complications in estate administration.

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Book a consultation today to review your estate planning needs. Your peace of mind and your children's future are worth it.