What type of trust is created in a Last Will and Estate?

• A. Testamentary trust
• B. Living trust
• C. Inter vivos trust
• D. Irrevocable trust

Answer: (A)

A testamentary trust is created in a Last Will and Testament and takes effect only after the testator’s death. The will directs that certain assets pass into the trust and appoints a trustee to manage and distribute those assets to named beneficiaries. Because funding comes from the probate estate, this type of trust operates after death and does not exist during the grantor’s lifetime. This is useful for protecting and managing assets for minors or beneficiaries who need oversight. In contrast, a living (inter vivos) trust is created during life and can be funded to avoid probate, an inter vivos trust simply refers to a trust created during life, and an irrevocable trust is a trust that is generally not easily amended; these attributes describe different concepts, not what is created by a will. Therefore, the type created by a Last Will is a testamentary trust.