How do I establish a testamentary trust?

Setting up a testamentary trust tends to involve the following key steps:

1. Engage an estate planning lawyer to draft a will that includes provisions for the trust. Obtaining professional legal advice ensures your trust is properly structured and meets all legal requirements, so it can run smoothly after your passing.
2. Appoint someone you trust as a trustee to manage the trust’s assets responsibly.
3. Decide who will benefit from the trust, whether through income, capital, or both.
4. Define the trust terms for managing and distributing assets, including the trustee’s responsibilities and beneficiaries’ rights.
5. Sign the will in front of independent witnesses who are not beneficiaries of the trust.