In a nutshell, testamentary trust is another name for a Will trust.

It is a more formal term, similar to the use of the title ‘Last Will and testament’, and it is useful to understand why it appears.

‘Testamentary trust’ often appears in formal legal documents and definitions, especially those which are older, or which refer to older documents.

Wills made years ago may well contain trusts referred to as ‘testamentary trusts’.

In theory – though this very rarely actually happens – a trust set up by a Will can last for 125 years. But even in practice a trust can last for the lifetime of the beneficiary, such as if you were to leave your house for the benefit of someone on a life interest trust. (For more information, see our page on Life interest trust.)

Your Will remains valid during your life until either you revoke it yourself, or it is automatically revoked (such as by you getting married). And your Will remains valid long after your death, because it has been executed as a public document, approved by the grant of probate, which operates as proof of the way that property is to pass.

This means that whether a trust is referred to as a Will trust or a testamentary trust, it remains in operation for as long as the conditions of the trust apply.

It is also relevant if your own estate includes property in a trust which was created by someone else’s Will, which describes that trust as a testamentary trust. Your own Will might need to refer specifically to it, and it is usual practice to identify it by the name it was given when created.

Modern Wills refer to ‘Will trusts’ rather than ‘testamentary trusts’. Neither term has any greater validity or legal effect than the other, and preference is given to the one that is most easily understood.