Testamentary Trust Template

This Testamentary Trust is established under the Last Will and Testament of [Testator Name] dated [Date]. Upon Testator’s death, the Personal Representative shall transfer property described herein to [Trustee Name] to hold in trust for the benefit of designated beneficiaries.

Article I – Funding and Trust Name

• Trust name: [Name of Trust].
• Trust funded with assets identified in Will (specific bequests/residuary share).

Article II – Beneficiaries

• Primary beneficiaries: [Children/Descendants].
• Secondary beneficiaries: [Describe if primary predeceases or disclaims].

Article III – Distribution Standards

• Trustee may distribute income and principal for beneficiaries’ health, education, maintenance, and support (HEMS).
• Consider outside resources of beneficiaries when making distributions.
• Age-based withdrawal rights (e.g., one-third at age 25, half at 30, remainder at 35) or continue trust for life with discretionary distributions.

Article IV – Education Provisions

• Authorize Trustee to pay tuition, room and board, books, and related educational expenses for beneficiaries.

Article V – Special Needs Beneficiary (optional)

• If any beneficiary has a disability, Trustee may administer share as supplemental needs trust to preserve government benefits.

Article VI – Termination

• Trust terminates upon distribution at specified ages or upon death of last beneficiary, with remainder to [Remainder Beneficiaries/Charity].

Article VII – Trustee Powers

• Invest and reinvest assets, retain trust property, employ professionals, make tax elections, loan funds, divide into separate shares.
• Authority to convert trust to unitrust or decant to new trust if permitted by law.

Article VIII – Trustee Compensation and Accounting

• Trustee entitled to reasonable compensation and reimbursement of expenses.
• Provide annual accountings to adult beneficiaries/guardians.

Article IX – Successor Trustees

• List successor trustees; beneficiaries may remove/replace trustee with independent trustee to maintain tax benefits.

Article X – Spendthrift Provision

• Beneficiary interests protected from creditors and assignment.

Article XI – Governing Law

• Trust governed by laws of [State]; situs may change with consent of beneficiaries/court.

Article XII – Tax Matters

• Trustee may make tax elections, allocate generation-skipping transfer exemption, file required returns.

Article XIII – Dispute Resolution

• Encourage mediation/arbitration before litigation.

Article XIV – Miscellaneous

• Gender-neutral terminology, severability, incorporation by reference to will provisions.

Acceptance by Trustee

The undersigned Trustee accepts the trust and agrees to administer it according to this agreement and applicable law.

Trustee: ____ Date: __

Successor Trustee (optional acknowledgment): ____ Date: __

Coordinate testamentary trust terms with overall estate plan and applicable state trust codes.