Trusts Created as Part of a Will
Testamentary trusts are supervised by the probate court.
When the maker of a will does not want the beneficiary to receive his or her inheritance outright but wants someone to hold the inheritance until certain conditions are met, they can establish a testamentary trust as part of one's will.
If you have been named a trustee in a will, you must file an application and be appointed by the probate court before you will have any authority to act. You are required to file periodic reports with the probate court detailing all of the financial transactions occurring during the reporting period.
You may need to file trust income tax returns and you could be held liable for making distributions not authorized by the will or for not properly investing or protecting the trust assets.
