What is a testamentary trust?

A testamentary trust is a trust created through your will that only comes into existence after you die. It's commonly used to manage money for young children or beneficiaries who aren't ready to handle a lump sum, releasing funds gradually under a trustee's care. Unlike a living trust, it does go through probate since it's part of your will. It's a useful way to control how and when your heirs receive their inheritance.