By David Chilton, The Wealthy Barber
In this article we’re going to take a brief look at testamentary trusts.
How exciting is that? Try to contain yourself! “Todd, turn off the hockey game! Yes, I know it’s 5 to 5 and in overtime, but you must read Chilton’s article on testamentary trusts. It’s captivating!”
Ok, I admit that is not a likely response to this piece. Or either of my books, for that matter. (Thought I would say that before you did.)
But, honestly, testamentary trusts really are quite interesting. Not riveting, but quite interesting.
More importantly, I think they can play a very helpful role in many Canadians’ estate plans.
So, what is a testamentary trust?
Quite simply, it’s a trust that is created on the day a person dies. Or, as my dad stated, it kicks in when you kick the bucket. Not surprisingly, my father has never been asked to write copy for the financial industry.
The trust is established through the transfer of ownership of some of the deceased’s assets. A designated-in-the-will trustee, could be an individual or a trust company, administers the trust according to the instructions as to how those assets are to be used for the benefit of the beneficiary.
"They are a tool—a quite flexible tool—that can help you to help the people you love." ~ David Chilton