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.
Keywords: Washington Testamentary Trust Provision, Stock, Held in Trust, Grandchild, Distributions, Certain Age Reached, Types Description: A Washington Testamentary Trust Provision with Stock to be Held in Trust for a Grandchild and no Distributions to be Made until a Certain Age is Reached is a legal provision used in estate planning to ensure the financial security of a grandchild or grandchildren. This provision allows for the establishment of a trust with stocks as the primary asset to be held for the benefit of the grandchild, preventing the immediate distribution of the stocks and preserving their value for future use. There are different types of Washington Testamentary Trust Provisions with Stock to be Held in Trust for a Grandchild, each catering to specific needs and circumstances: 1. Irrevocable Trust: An irrevocable Testamentary Trust Provision ensures that once the stocks are transferred to the trust, the granter cannot change or revoke the decision. This arrangement provides additional asset protection and can be useful in scenarios where the granter wants to secure the grandchild's inheritance from potential creditors or divorce settlements. 2. Revocable Trust: Contrary to an irrevocable Trust, a revocable Testamentary Trust Provision allows the granter to make changes or even revoke the trust during his or her lifetime. It offers flexibility in managing the trust and adjusting the distribution terms or beneficiaries, if necessary. 3. Discretionary Distribution Trust: Under this Testamentary Trust Provision, the trustee has the authority to make distributions from the trust to the grandchild. However, the provision specifies that no distributions should be made until the grandchild reaches a certain age, as determined by the granter. This type protects the assets and ensures that they are not squandered until the grandchild reaches a more mature and responsible age. 4. Incentive Trust: An Incentive Trust is designed to motivate specific behaviors or achievements in the grandchild. The trust's provisions may outline certain goals or milestones that the grandchild must meet to receive distributions. For example, the trust may require the grandchild to complete a college education or engage in charitable endeavors as a condition for receiving funds. 5. Spendthrift Trust: A Spendthrift Testamentary Trust Provision offers protection to the grandchild from their own potential poor financial decisions or from external creditors. The trust restricts the grandchild's ability to transfer or assign their interests, ensuring that the assets remain intact and prevent irresponsible spending or exploitation. In conclusion, a Washington Testamentary Trust Provision with Stock to be Held in Trust for a Grandchild and no Distributions to be Made until a Certain Age is Reached is a valuable tool for estate planning in Washington state. By choosing the appropriate type of trust, the granter can safeguard the stocks, control the distribution timing, and provide financial security for their grandchildren.
