Testamentary trust
A trust created inside your will, which springs into existence only when you die. Cheaper to set up than a living trust but doesn't avoid probate.
A testamentary trust is a provision inside your will that says "at my death, instead of distributing this property outright, put it into a trust for the benefit of [X], with [Y] as trustee." The trust does not exist while you are alive.
Common use cases: leaving assets to minor children (held in trust until they reach 25 or 30), to a surviving spouse with remainder to children, or to a beneficiary who cannot manage money.
Key tradeoffs vs. a living trust: (1) testamentary trusts go through probate because they are part of the will, so your estate plan becomes a public record, (2) the trust is subject to ongoing court oversight in some states, (3) setup cost is minimal — it's just a few paragraphs in your will — but execution cost at death is higher.
Tagged 🟡 because the will-drafting itself is DIY-possible, but the trust provisions (distribution standards, trustee powers, termination triggers) are the specific paragraphs that most often get drafted wrong in DIY wills.
State-specific notes
Testamentary trusts in Virginia are subject to the Uniform Trust Code just like living trusts once they come into existence. Virginia does not require court supervision of testamentary trust administration, but the trustee must qualify before the circuit court.
Similar posture in West Virginia under the Uniform Trust Code (Chapter 44D). Testamentary trustees qualify before the county commission.
A testamentary trust in Alabama is created by a will admitted to probate under the Alabama Probate Code (Ala. Code Title 43, Chapter 8) and then administered under the Alabama Uniform Trust Code (Ala. Code § 19-3B-101 et seq.). Because it passes through probate, it is fully public record. No Alabama state estate tax applies; federal estate-tax exposure is the only transfer-tax concern.