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If you have minor children or grandchildren, estate planning isn’t just about who gets what—it’s about how and when they receive it. One tool that can help protect a young beneficiary’s inheritance is the testamentary trust.
A testamentary trust is created through your will and becomes active only after your death. It allows you to control how assets are distributed to minors over time—providing structure, protection, and peace of mind.
Here’s how testamentary trusts work in Georgia and why you might consider one.
What Is a Testamentary Trust?
A testamentary trust is a trust created by the terms of your will. Unlike a revocable living trust, it doesn’t exist during your lifetime. Instead, it springs into action when you pass away and your will goes through probate.
Key Features:
- Tied to your will
- Goes through probate before becoming active
- Used to manage assets for children, grandchildren, or other young heirs
- Appoints a trustee to control how the money is used
👉 Learn how to write a will that includes minors
Why Use a Testamentary Trust for Minors?
Without a trust, assets left directly to a minor are typically managed by a guardian or held by the court until the child turns 18. At that point, the child receives the full amount—no restrictions, no guidance.
A testamentary trust avoids this risk by allowing you to:
- Delay inheritance beyond age 18 (e.g., distribute funds at 25 or in stages)
- Limit spending to specific purposes like education, housing, or healthcare
- Appoint a trusted adult (trustee) to manage funds responsibly
- Protect funds from creditors, poor decisions, or outside influence
👉 See how families protect assets through trusts in Georgia
When Is a Testamentary Trust a Good Idea?
You should consider one if you:
- Have children under 18
- Want to avoid court-managed guardianship over assets
- Prefer to give limited access to large sums of money
- Want to stagger distributions at key life stages (e.g., college graduation, age 30)
- Want a more affordable alternative to a full living trust
While testamentary trusts are not effective for avoiding probate, they’re a strong option for managing minor inheritances when paired with a well-drafted will.
How to Set Up a Testamentary Trust in Georgia
Setting one up involves these steps:
- Work with an estate planning attorney to draft a will that includes clear trust instructions
- Name a trustee who is reliable, responsible, and able to manage financial matters
- Define the terms: who gets what, when, and how
- Keep your will updated if family or financial circumstances change
👉 Read more about what executors can and can’t do
Alternatives to Testamentary Trusts
If avoiding probate is a priority or your estate is more complex, consider:
- A revocable living trust: Offers more flexibility, privacy, and probate avoidance
- A UTMA account: Useful for smaller gifts but less flexible than a trust
- A 529 plan: Tax-advantaged savings for education, but limited use
Final Thoughts
A testamentary trust is a practical, affordable way to ensure your minor children or grandchildren don’t inherit too much, too soon. It gives structure to their inheritance—and gives you peace of mind.
At Hurban Law, LLC, we help Georgia families draft wills and trust-based plans that truly protect their loved ones. Whether you’re starting fresh or updating your estate, we can help you create a plan that works now and for years to come.
Contact us today to set up a testamentary trust tailored to your family’s needs.
