Which instrument creates trusts for beneficiaries?

• A. Wills
• B. Simple Will
• C. Living Will
• D. Testamentary Trust Will

Answer: (D)

Trusts can be created to control how assets are managed and distributed after death. A testamentary trust is specifically formed by the terms of a will and comes into existence when the person dies. The will designates assets to fund the trust, names a trustee, and sets rules for when and how the beneficiaries receive distributions. This mechanism lets you provide for minor or vulnerable beneficiaries, preserve assets for future generations, or place protections on how funds are spent.

In contrast, a living will addresses medical decisions and end-of-life care and does not involve transferring or holding assets. A simple will may distribute assets outright unless it includes a trust provision, but the instrument that explicitly creates a trust upon death is the testamentary trust will.