Testamentary Trust – Glossary | RJP Estate Planning

Trust Terms

A trust created inside a will that only takes effect after death and probate, offering less protection than a living trust.

A testamentary trust is a trust written into a person's will. It does not exist until the person dies and the will goes through probate. The probate court oversees creating the trust and supervises it going forward.

How a Testamentary Trust Differs From a Living Trust

Timing: A living trust is created and funded during your lifetime. A testamentary trust only exists after death and probate.
Probate: A testamentary trust requires full probate. A living trust avoids probate entirely.
Privacy: The will is filed with the court, making the testamentary trust public record. A living trust stays private.
Incapacity protection: A living trust protects you if you become incapacitated. Your successor trustee manages your affairs. A testamentary trust offers no incapacity protection because it does not exist until after death.
Court supervision: A testamentary trust operates under ongoing court oversight. A living trust operates privately.

When a Testamentary Trust Might Be Used

Testamentary trusts sometimes hold assets for minor children or people who should not receive a lump sum. However, a living trust does the same thing without probate, court oversight, or public record. For most Arizona families, a revocable living trust is the stronger choice.