[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/what-is-a-testamentary-trust-and-do-you-need-one-white-plains-ny-new-york-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/what-is-a-testamentary-trust-and-do-you-need-one-white-plains-ny-new-york-ny\/","headline":"What Is a Testamentary Trust and Do You Need One?","name":"What Is a Testamentary Trust and Do You Need One?","description":"\u201cUtilization of a testamentary trust for the surviving spouse is an excellent idea, whether the survivor is the husband or wife.\u201d A couple doing some retirement planning has an updated will and a health care proxy in place, prepared with the help of an estate planning attorney. They own some rental property, a small business […]","datePublished":"2020-05-29","dateModified":"2024-09-04","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e94b2b0c.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b0263e94b2b0c.jpg","height":566,"width":849},"url":"https:\/\/www.amorusolaw.com\/blog\/what-is-a-testamentary-trust-and-do-you-need-one-white-plains-ny-new-york-ny\/","about":["Asset Preservation","Beneficiary","Decedent","Estate Planning","Surviving Spouse","Testamentary Trust"],"wordCount":481,"keywords":["Asset Preservation","Beneficiary","Decedent","Estate Planning","Surviving Spouse","Testamentary Trusts"],"articleBody":"\u201cUtilization of a testamentary trust for the surviving spouse is an excellent idea, whether the survivor is the husband or wife.\u201dA couple doing some retirement planning has an updated will and a health care proxy in place, prepared with the help of an estate planning attorney. They own some rental property, a small business and life insurance, but their estate is not large enough for them to worry about the federal estate tax.Do they need or want a trust to be part of their estate plan? That\u2019s question from a recent article titled “It\u2019s the law: Testamentary trusts provide protection for assets” from the Post Register.First, there are many different types of trusts. A living trust, also known as a revocable trust, irrevocable trusts and testamentary trusts are just three types. The testamentary trust only comes into effect at death under a last will and testament, and in some cases, depending on how they are structured, they may never come into effect because they are designed for certain circumstances.If you leave everything to your spouse in a will or through a revocable trust, your spouse will receive everything with no limitations. The problem is, those assets are subject to claims by your spouse\u2019s creditors, caused for example by business issues, a car accident, or bankruptcy. The surviving spouse may use the money any way he or she wishes during their lifetime or through a will at death.Consider if your spouse remarried after your death. What happens if they leave assets that they have inherited from you to a new spouse? If the new spouse dies, do the new spouse\u2019s children inherit those assets?By using a trust, assets are available for the surviving spouse. At the death of the surviving spouse, assets in the trust must be distributed as directed in the language of the trust. This is especially important in blended families where there may be children from other marriages.Trusts are also valuable to distribute assets if there are beneficiaries with an inability to manage money, facing undue spousal interference or a substance abuse problem.Note that the trust only protects the decedent\u2019s assets, that is, their separate property and half of the community property, if they live in a community property state.The best solution to the issue of how to distribute assets, is to meet with an estate planning attorney and determine the goal of each spouse and the couple\u2019s situation. People who own businesses need to protect their assets from litigation. It may make sense to have significant assets placed in trust to control how they pass to family members and shield them from possible lawsuits.Reference: Post Register (April 26, 2020) “It\u2019s the law: Testamentary trusts provide protection for assets”For more information on asset preservation and estate planning, please visit my estate planning website."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"What Is a Testamentary Trust and Do You Need One?","item":"https:\/\/www.amorusolaw.com\/blog\/what-is-a-testamentary-trust-and-do-you-need-one-white-plains-ny-new-york-ny\/#breadcrumbitem"}]}]