Testamentary Trust is created by a Will and is established after the death of the testator in accordance with the instructions contained in his Will. A Will may contain more than one testamentary trust and may address all or only a part of the estate.
Generally, testamentary trusts are created for minor children, dependent or disabled relatives, or others who may not be able to manage substantial property after the death of the testator. A trustee appointed vide the testamentary trust manages the assets until the trust expires such as when the minor beneficiaries reach a certain age or after a specific goal is accomplished, etc. as stated in the Will.
The most important benefit of a testamentary trust is that no stamp duty or capital gains tax is attracted when the assets are transferred to the trust upon death of the testator.