How to Add a Testamentary Trust to Set Age Conditions for Beneficiaries

What is a Testamentary Trust?

A Testamentary Trust is a legal arrangement established through a Last Will and Testament. It outlines how and when assets will be distributed to named beneficiaries. This type of trust is commonly used by individuals with young children, allowing for the distribution of assets once the children reach a specified age.

Key Points:

• Established by a Will: A Testamentary Trust is created and defined within a Last Will and Testament.
• Distribution of Assets: It specifies how and when assets will be distributed to named beneficiaries.
• Common Use: It's commonly used by individuals with young children to ensure assets are distributed at a suitable age.

Does FastWill Provide Testamentary Trusts?

Yes, FastWill includes testamentary trust provisions in our Will-based plans. By selecting age-based conditions for any of your distributions, a Testamentary Trust clause will be automatically added to your Last Will and Testament. If you do not add any age conditions, a Testamentary Trust will not be generated in your final documents.

Age-Based Distributions:

You can specify the ages at which your beneficiaries can receive their distributions. However, you cannot currently specify the specific amount of the distribution at each age. The distribution will be equal across the ages you specify. For example, if you list three ages, the beneficiary will receive one-third of their distribution at each age.

Age Calculation:

The age you specify is the age you'd like them to be before receiving their distribution. If they've already reached that age before your passing, they'll receive their distribution immediately. However, if you've listed an age they haven't yet reached, they will not receive their distribution until they reach that age.

How to Add a Testamentary Trust to Your Will-Based Estate Plan

Adding age conditions to the distribution of assets integrates Testamentary Trust provisions into your Will. You can do this when you first set up your Plan or edit it later.

While filling out the Estate Plan questionnaire or editing the "Distributions" section, you'll be prompted about beneficiary distributions.

Select either "at specific ages (up to three)" or "at a minimum age" to set conditions based on the beneficiary's age.