testamentary trustn.
Reviewed by Owen Hathaway, AttorneyUpdated June 5, 2026A trust created by a will that springs into existence only at death, useful for managing assets for young or vulnerable beneficiaries.
A testamentary trust is a trust established within a will that comes into being only when the maker dies and the will is probated. Until then it has no assets and no legal existence.
It is commonly used to hold inheritances for minor children or beneficiaries who need management or protection. Unlike a living trust, a testamentary trust does not avoid probate, because it is created through the probate of the will and the resulting trust is typically subject to court supervision.
Recognized in both Colorado and Wyoming under their respective trust codes. Because the trust arises through probate, ongoing court involvement is more likely than with a revocable living trust.
Related terms
- willA signed, witnessed document that says who gets a person's probate property after death and names an executor to carry it out. It takes effect only at death and only after probate.
- probateThe court-supervised process of proving a will, paying a deceased person's debts, and transferring what's left to the heirs or beneficiaries.
- special needs trustA trust that holds assets for a person with disabilities without disqualifying them from need-based benefits like Medicaid and SSI.
- trust administrationThe ongoing work of running a trust after the settlor's death or incapacity: taking control of assets, notifying beneficiaries, paying expenses, and distributing as the trust directs.