Which term refers to a trust created by the terms of a will?

Which term refers to a trust created by the terms of a will?

• A. Implied
• B. Testamentary
• C. Simple
• D. Abatement

Answer: (B)

A testamentary trust is created by the terms of a will and comes into existence after the decedent’s death, once the will is probated and the trust is funded according to its provisions. This distinguishes it from an implied trust, which arises from actions or circumstances rather than a written instrument; a simple trust, which concerns the tax treatment and requirement to distribute income annually; and abatement, which is the reduction of bequests when the estate cannot satisfy all gifts. So the term that matches “trust created by the terms of a will” is testamentary.

A testamentary trust is created by the terms of a will and comes into existence after the decedent’s death, once the will is probated and the trust is funded according to its provisions. This distinguishes it from an implied trust, which arises from actions or circumstances rather than a written instrument; a simple trust, which concerns the tax treatment and requirement to distribute income annually; and abatement, which is the reduction of bequests when the estate cannot satisfy all gifts. So the term that matches “trust created by the terms of a will” is testamentary.