By Adam L. Engel, Esq. | Estate & Probate Attorney | Shin Law Office
What Is a Testamentary Trust?
When I sit down with families in Loudoun County to discuss estate planning, one of the most common concerns I hear is, “What happens to my children if something happens to me?”
That’s where a Testamentary Trust comes into play.
A testamentary trust is created through your will and only takes effect after your death.
Unlike a living trust that operates while you’re alive, a testamentary trust is activated by the probate court once your will is validated.
It can be tailored to fit your family’s needs—especially when it comes to protecting children or dependents who aren’t yet ready to manage money on their own.
Why Families Choose a Testamentary Trust
The primary reason families use a testamentary trust is control and protection.
If you pass away while your children are still minors, you probably don’t want them to receive a lump sum of assets at age 18.
Instead, you want to ensure the money is used wisely for education, health, and daily living expenses until they’re mature enough to handle it.
A testamentary trust allows you to:
- Appoint a trustee to manage assets responsibly.
- Set clear rules for how and when funds are distributed.
- Provide long-term financial support for children, dependents with special needs, or even elderly parents.
- Prevent mismanagement by delaying direct access to assets until the beneficiaries reach a certain age or milestone.
How Probate Impacts a Testamentary Trust
One crucial detail I always explain is that a testamentary trust must go through probate in the Loudoun County Circuit Court.
That means your will is filed, validated, and supervised by the court before the trust is officially established.
For some families, this added oversight is reassuring because it ensures accountability.
For others, probate can feel like an extra hurdle because it takes time, adds costs, and makes the process public.
Still, for families with minor children, the benefits of a testamentary trust often outweigh these drawbacks.
Practical Example for Loudoun County Families
Imagine a family in Leesburg with two children under the age of 10.
If both parents pass away unexpectedly, without a testamentary trust, the children could inherit assets outright at age 18.
That might mean a large sum of money in the hands of teenagers, not an ideal scenario.
But with a testamentary trust, the parents can say:
- Funds should be used first for education, healthcare, and basic living expenses.
- The children receive limited access at age 21 and full access at age 30.
- A trusted family member or professional trustee oversees distributions along the way.
This setup ensures the children are supported but not overwhelmed by financial responsibility too early.
Why It Matters in Loudoun County
Loudoun County families often have unique considerations, such as fast-growing home values, business assets, and sometimes multi-generational living arrangements.
A testamentary trust offers a means to protect wealth, preserve family harmony, and ensure children’s security in the event of an unforeseen circumstance.
Final Thoughts
Estate planning isn’t just about dividing property; it’s about caring for your family when you can’t be there to guide them.
A testamentary trust provides structure, security, and peace of mind.
Yes, it goes through probate, but for many families, that’s a worthwhile trade-off for the protection it provides.
If you’re a Loudoun County parent worried about what the future holds for your children, I encourage you to take this step.
Let’s sit down together and design a plan that ensures your loved ones are supported in the way you intend.
Call Shin Law Office today at 571-445-6565 or use our online contact form to schedule a consultation with me.
— Adam L. Engel, Esq.
Attorney | Shin Law Office
Call 571-445-6565 or book a consultation online today.
