A testamentary trust is a trust in which the trust property is bequeathed or devised by will to the trustee for the benefit of the beneficiaries. Statutes in effect in the various jurisdictions prescribe certain formalities which must be observed in connection with the execution of a will in order to give validity to the instrument and make it eligible to be probated. A valid testamentary trust is created only when the will attempting to create it complies with the formalities of the state's statutes covering wills. An instrument will be denied probate where it fails to conform at least substantially to the controlling statutory provisions governing the execution of wills.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
District of Columbia Testamentary Trust Provision with Stock to Held in Trust for Grandchild and no Distributions to be Made until a Certain Age is Reached is a specific type of trust arrangement that can be established in the District of Columbia for the benefit of a grandchild. This provision is designed to ensure the responsible and controlled transfer of assets, specifically stocks, to the designated grandchild, whilst delaying distributions until a certain age is reached. It allows the settler (the person creating the trust) to leave a legacy for a grandchild, secure the value of the stocks, and ensure that the distributions are made at an appropriate time in the grandchild's life. The District of Columbia provides several variations of this testamentary trust provision, tailored to meet different objectives and circumstances. Some common types of District of Columbia Testamentary Trust Provision with Stock to Held in Trust for Grandchild and no Distributions to be Made until a Certain Age is Reached include: 1. Fixed Age Testamentary Trust: Under this arrangement, the trust assets, including the specified stocks, are held in trust for the grandchild until they reach a predetermined age, such as 25 or 30. No distributions are made before the designated age is reached, ensuring that the assets grow and remain protected until the grandchild reaches a level of maturity suitable for managing the inherited wealth. 2. Graduated Age Testamentary Trust: This type of provision involves staggered distributions, allowing the grandchild to receive a portion of the trust assets at different ages. For example, the trust might provide for a distribution of one-third of the stock holdings at age 25, another third at age 30, and the remaining third at age 35. This structure aims to provide the grandchild with gradual access to the assets, fostering financial responsibility and preventing irresponsible spending. 3. Income-only Trust until a Certain Age: In this variant, the testamentary trust provision stipulates that only the income generated by the stocks held in trust can be distributed to the grandchild until they reach a specific age. The principal, which is the underlying value of the stocks, remains untouched until the designated age is reached. This type of trust allows the grandchild to benefit from the income generated by the stocks while preserving the principal for future use or investment. 4. Discretionary Testamentary Trust: This type of provision grants the trustee, appointed by the settler, the discretion to make distributions of income or principal from the trust to the grandchild as necessary or appropriate. The trustee considers various factors such as the grandchild's financial needs, educational expenses, and overall well-being when deciding on distributions. The age restriction on distributions remains in effect until the designated age is reached, ensuring that the assets are managed prudently. Each of these testamentary trust provisions in the District of Columbia serves the common goal of preserving and managing stock holdings for the benefit of a grandchild until a certain age is reached. By employing these provisions, settlers can ensure that their grandchildren receive their inheritance at an appropriate time, protecting them from making premature financial decisions and promoting their long-term financial security.
