Alabama Real Estate Practice Exam

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What does a testamentary trust involve?

A deed changing hands before death
A trust established before death
Instructions in a will for a trust effective after death
Immediate transfer of property upon will creation

The correct answer is: Instructions in a will for a trust effective after death

A testamentary trust is a specific type of trust that is established through instructions in a will for when it becomes effective after the creator's death. This means that the trust is not actively being used or managed until after the creator's death, unlike options A and D which involve immediate actions. Option B is incorrect because a testamentary trust is not established before death, but rather it is created and goes into effect after the creator's passing.