A Testamentary Trust is a legal entity created within a will that takes effect upon the death of the testator (the person who makes the will). Such trusts are commonly used to manage assets for beneficiaries who may not be able to handle them directly, such as minors or individuals with special needs. This article provides three practical examples of Testamentary Trust Will Templates specifically for Pennsylvania, offering clarity and structure for those looking to establish such trusts.
This template is suitable for parents wishing to create a trust for their minor children. The will outlines how their assets will be managed until the children reach a specified age.
In this example, John and Mary Smith want to ensure that their two children are financially protected in the event of their passing. They decide to create a Testamentary Trust that will hold their assets until the children turn 25.
Last Will and Testament of John Smith and Mary Smith
We, John Smith and Mary Smith, residents of Pennsylvania, declare this to be our Last Will and Testament.
1. Upon our demise, we establish a Testamentary Trust for our children, Emma Smith and Liam Smith.
2. The Trustee shall be our trusted friend, Robert Johnson.
3. The assets of the Trust shall include:
- Our home located at 123 Main St, Anytown, PA
- Bank accounts and investments totaling approximately $500,000
4. The Trustee shall manage these assets until each child reaches the age of 25.
5. Upon reaching the age of 25, each child shall receive half of the remaining assets in the Trust.
6. Should both children pass before reaching 25, the assets shall go to their surviving descendants.
Signed, John Smith and Mary Smith
Date: [Insert Date]
Witnesses: [Insert Names]
Notes: It’s essential to name a reliable trustee and consider appointing a successor trustee in case the primary trustee is unable to fulfill their duties.
This template is designed for individuals who have a beneficiary with special needs, ensuring that their inheritance does not interfere with government benefits.
Samantha Jones is a single mother of a son, Alex, who has special needs. She wants to provide for him without jeopardizing his eligibility for disability benefits. Therefore, she establishes a Testamentary Trust within her will.
Last Will and Testament of Samantha Jones
I, Samantha Jones, a resident of Pennsylvania, declare this to be my Last Will and Testament.
1. Upon my passing, I establish a Testamentary Trust for my son, Alex Jones.
2. The Trustee shall be my sister, Rachel Smith.
3. The assets of the Trust shall include:
- My life insurance policy worth $250,000
- My savings account totaling $100,000
4. The Trustee shall use the assets to provide for Alex’s health, education, and general welfare without affecting his eligibility for government benefits.
5. The Trust shall continue until Alex reaches the age of 30, after which any remaining assets shall be distributed to him.
Signed, Samantha Jones
Date: [Insert Date]
Witnesses: [Insert Names]
Notes: Consult a lawyer specializing in estate planning to ensure compliance with federal and state laws regarding special needs trusts.
This template is beneficial for individuals with children from previous relationships, ensuring equitable distribution among all beneficiaries.
Thomas and Linda Brown have children from previous marriages and wish to provide for both sets of children while also protecting their new family’s interests. They decide to create a Testamentary Trust to manage their combined assets.
Last Will and Testament of Thomas and Linda Brown
We, Thomas Brown and Linda Brown, residents of Pennsylvania, declare this to be our Last Will and Testament.
1. Upon our passing, we establish a Testamentary Trust for our children:
- From Thomas: Sarah Brown and Ben Brown
- From Linda: Emma Johnson and Jake Johnson
2. The Trustee shall be our attorney, Mark Thompson.
3. The assets of the Trust shall include:
- Joint bank accounts totaling $300,000
- Family vacation home located at 456 Lakeview Dr, Anytown, PA
4. The Trustee shall distribute Trust assets equally among all four children upon the youngest child reaching age 30.
5. If any child passes before reaching the age of 30, their share shall be divided equally among their surviving siblings.
Signed, Thomas Brown and Linda Brown
Date: [Insert Date]
Witnesses: [Insert Names]
Notes: Blended families often face unique challenges; thus, it’s crucial to communicate intentions clearly and consider family dynamics when drafting a will.