Will my assets go straight to my kids or family when I die, or can someone manage them first? A testamentary trust is a trust created inside a will that does not take effect until the person who made the will dies. Instead of property passing outright to a beneficiary, the will directs those assets into the trust, where a trustee manages them under the rules written in the will. That setup is often used for minor children, a disabled family member, or anyone who should not receive a lump sum all at once.

In practical terms, this is a control tool. It can spread out payments, protect money from being spent too fast, and spell out exactly when funds can be used for housing, school, medical care, or basic support. Because it is created by a will, it usually must go through probate before the trust is funded, unlike some living trusts that may avoid court.

For an injury claim, that can matter if settlement money becomes part of a deceased person's estate or is being left to a child after a fatal crash on I-90 or another loss. In New York, testamentary trusts are governed mainly by the Estates, Powers and Trusts Law, including EPTL Article 7, and the will itself is handled through Surrogate's Court under the Surrogate's Court Procedure Act. If a will creates one, the exact wording matters.