The part that trips people up most is that it does not exist while the person is alive. A testamentary trust is a trust created by a will and brought into effect only after the will-maker dies. Instead of transferring property into a trust during life, the will directs that certain money or property be placed into the trust at death and managed by a trustee for named beneficiaries.

That timing matters. Because the trust is created through a will, the estate usually has to go through probate before the trust is funded. A living trust can often avoid probate; a testamentary trust usually cannot. People often use one when they want to leave assets for a child, a person with disabilities, or someone who may need help managing money over time rather than receiving a lump sum.

In practice, a testamentary trust can control when and how assets are paid out, such as for education, health care, or basic support. It can also help protect assets from waste, creditor problems, or family disputes, depending on how the will is written.

For an injury claim, this can matter if a deceased person's estate receives settlement proceeds or if a minor heir is supposed to inherit money. The trust terms may affect who has authority to handle funds, when distributions happen, and whether court approval is needed. In Mississippi, testamentary trusts are governed in part by the Mississippi Trust Code, Miss. Code Ann. Title 91, Chapter 8.