A trust established by the terms of a will.

A trust established by the terms of a will.

• A. Express
• B. Implied
• C. Complex
• D. Testamentary

Answer: (D)

When a trust is created by the terms of a will, it is called a testamentary trust. It comes into existence at the testator’s death, once the will is probated, and assets from the estate are placed into the trust to be managed and distributed by a trustee according to the will’s instructions. This type of trust contrasts with an express trust, which is created during the grantor’s lifetime by a trust instrument, and with an implied trust, which arises by operation of law even without a written agreement. A complex trust is a tax or administrative classification rather than a way the trust is created.

When a trust is created by the terms of a will, it is called a testamentary trust. It comes into existence at the testator’s death, once the will is probated, and assets from the estate are placed into the trust to be managed and distributed by a trustee according to the will’s instructions. This type of trust contrasts with an express trust, which is created during the grantor’s lifetime by a trust instrument, and with an implied trust, which arises by operation of law even without a written agreement. A complex trust is a tax or administrative classification rather than a way the trust is created.