You may need a testamentary trust when you are responsible for children, a spouse or disabled family members. A testamentary trust only comes into existence when you pass away and can be used to protect and preserve the assets left behind to look after and take care of minor children, mentally or physically disabled beneficiaries or a surviving spouse. You also get to nominate your trustees, and Guardian in your Will, to make sure that the people you trust are empowered to carry out your wishes when you are no longer able to do so.
You can make provision for a testamentary trust in your will.
The trust is also used to reduce estate tax liabilities and ensure professional management of the assets.