A trust that is created under the will and comes into effect upon the testator's death is called what?

• A. Living trust
• B. Testamentary trust
• C. Charitable trust
• D. Irrevocable trust

Answer: (B)

A trust created under a will that takes effect after the testator’s death is a testamentary trust. Because it is established by the will, it doesn’t exist while the person is alive and is funded and activated only after death, typically through the probate process. The will specifies how certain assets should be placed into the trust and how the trustee should manage and distribute them for the beneficiaries.

This differs from a living trust, which is created during the person’s lifetime and can be funded and become effective before death; it is not created by a will to operate after death. It also differs from a charitable trust, which is set up for charitable purposes, and from an irrevocable trust, which refers to the binding nature of the trust’s terms rather than when the trust takes effect.