When does a testamentary trust become effective?

• A. At creation
• B. Upon the death of the testator
• C. When funded
• D. When a beneficiary is named

Answer: (B)

A testamentary trust is created in a will and comes into existence only when the testator dies and the will is admitted to probate. It isn’t operative at the time the will is created or executed, and naming a beneficiary is part of the terms but does not by itself trigger effectiveness. After death, the executor funds the trust by transferring assets from the estate into the trust as directed by the will, so funding occurs post-m death. Therefore, the trust becomes effective upon the testator’s death.