Also exempted from reserves are Personal Trust (Testamentary Trust
), Executorship, Guardianship, Life Insurance Trust, Pre-need Plans (institutional/individual, Personal Equity and Retirement Account or PERA, and Legislated and Quasi-Judicial Trust.
Oehler Testamentary Trust
. Long-time Grayslake resident, Grayslake High School and Northwestern University alumnus Richard G.
Lengthy litigation The issue arose in the course of lengthy litigation in which the plaintiff beneficiaries of a testamentary trust
sought and ultimately obtained the effective termination of that trust.
We call this type of trust a testamentary trust
because it does not exist until the testator's death.
For CPAs involved in trust compliance and planning, the key step when any testamentary trust
is formed is to have a meeting with the trustee and trust counsel to review the trust and how it should be operated.
Does your will create a testamentary trust
to benefit your spouse, common-law partner or children?
A second, more recent case (36) called upon the Illinois Supreme Court to determine whether a gift within a testamentary trust
made conditional on a beneficiary's marriage to a Jewish spouse should be struck down as a public policy violation.
4) TESTAMENTARY TRUST
: Property owned in a sole name (individually) first passes through the will, and then into the trust by specific language in the will.
Thus, it must be specifically created by will or by the terms of the revocable trust to be considered a testamentary trust
. If the decedent had a qualified revocable trust that is used as the administrative trust, it may qualify under that exception.
It should be noted that a testamentary trust
may be named as the beneficiary of a life insurance policy on the life of the testator.
(21.) Holzbaugh v Detroit Bank & Trust Co, 371 Mich 432, 436-37, 124 NW2d 267, 269 (1963), quoting Jacobs v Miller, 50 Mich 119, 126, 15 NW 42, 45 (testamentary trust
beneficiaries estopped from challenging validity of trust because they accepted benefits from that trust) (emphasis supplied).