testamentary trust

A trust created as a result of explicit instructions from a deceased's will.

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Typically, the remaining estate of the deceased (trustor) will act as the body of the trust, and the executor will manage it until the beneficiaries are capable of doing so individually.

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Trust established by the terms of a Will. After the death of the Testator it becomes an Irrevocable Trust. This kind of trust is useful if the testator wishes to set aside funds for the education of children who are minors or have just reached the age of majority. The trust is placed in the hands of a trustee, who may be an individual or a bank trust department.

Trust created by a will, which comes into effect only after the Testator's death.
Example: A certain testamentary trust was called a unified credit trust because it took advantage of Tax Credit amounts after one spouse died.