A trust created by a will, taking effect on death.
In Islamic law
Useful where faraid shares pass to minor children, since a minor cannot manage property directly. The share remains the child's; the trust governs who administers it until majority.
In Canadian law
Commonly used where beneficiaries are minors or where staged distribution is wanted. Since 2016, most testamentary trusts are taxed at the top marginal rate rather than at graduated rates.
We have not yet researched whether the four Sunni schools differ on this term, so we are not going to tell you either way. Where a specific case turns on it, ask a qualified scholar rather than relying on a general summary.
Canadian legal detail
Treadstone Law, an Ontario firm with a wills and estates practice, covers the Canadian side of this in more depth:
- Why most trusts pay top tax rate canada
- Testamentary trust vs inter vivos trust tax rates
- Estate taking too long what beneficiaries can do ontario
This is legal information only. For advice on your own circumstances, speak to a lawyer.
Citations & sources
Every factual claim on this page traces to a source below. Details change — check the original source before relying on any figure, fee or legal position. Anything under “further reading” is related material, not a source for what is stated here.
- Why most trusts pay top tax rate canada — Treadstone Law
- Testamentary trust vs inter vivos trust tax rates — Treadstone Law
- Estate taking too long what beneficiaries can do ontario — Treadstone Law
- What is a testamentary trust ontario — Treadstone Law
- Wills & estates practice — Treadstone Law