A testamentary trust is a trust that is created by a will. This kind of trust does not exist until property passes into it after the grantor’s death through his will. As this kind of trust is stated in the will and requires the will to be probated. It is not used to avoid probate and is subject to the jurisdiction of the probate court.
This type of trust allows the grantor to keep his assets in his name during his lifetime, and then, upon his death, to transfer some or all of them into trust for the benefit of a minor child, or for a beneficiary who does not have the financial ability to handle a large sum of money all at once.