What Is a Testamentary Trust in Ohio?

What Is a Testamentary Trust? When Ohio Families Should Use One

By Wolterman Law Office  |  Updated June 4, 2026  |  Estate Planning, Trusts

Most people have heard of a living trust, but fewer are familiar with the testamentary trust, which is a different tool that serves a different purpose. Understanding when each type of trust is appropriate requires understanding how they are created, how they interact with probate, and what problem each one is designed to solve.

How a Testamentary Trust Works

A testamentary trust is established within the terms of a last will and testament. During the will-maker's lifetime, the trust does not exist as a legal entity. When the will-maker dies, the will goes through probate. Once the probate court admits the will and the estate is administered, the assets designated for the trust are transferred to it, and the trust becomes operational under the management of the named trustee.

The trustee then manages and distributes the trust assets according to the instructions in the will. Those instructions might specify that a surviving spouse receives income from the trust for life, with the principal passing to children at the spouse's death. They might hold assets for minor children until they reach a specified age. They might provide for a beneficiary with special needs without disqualifying them from government benefits.

Because a testamentary trust is created through a will, it becomes a public record when the will is probated. The trust itself is also subject to ongoing probate court supervision in Ohio, which adds an administrative layer that living trusts do not have.

Testamentary Trust vs Living Trust: Key Differences

When a Testamentary Trust Makes Sense for Ohio Families

A testamentary trust is a reasonable choice in specific situations. The most common is when parents of minor children want to ensure that an inheritance is managed by a responsible trustee rather than handed directly to a child who reaches the age of majority. Without a testamentary trust, an 18-year-old in Ohio inherits outright. With one, the trustee can hold and invest the assets until the child reaches a more appropriate age, such as 25 or 30, and can make discretionary distributions for education, health, and support in the meantime.

A testamentary trust is also appropriate when a beneficiary has financial management challenges, addiction issues, or is at risk of creditor claims. The trustee provides a layer of oversight that a direct inheritance does not. This type of trust often includes a spendthrift clause, which prevents the beneficiary from assigning their interest and limits creditor access to the trust assets before distribution.

For families with modest estates who are primarily concerned about what happens to their children rather than avoiding probate, a testamentary trust within a well-drafted will may accomplish their goals at a lower upfront cost than a full living trust package.

What Is a Spendthrift Trust in Ohio?

A spendthrift trust is not a separate type of trust but rather a trust that includes a spendthrift clause. That clause restricts the beneficiary's ability to transfer or pledge their interest in the trust and prevents most creditors from reaching trust assets before they are distributed. Ohio recognizes spendthrift trusts under the Ohio Trust Code, and they are a common feature in trusts designed to protect beneficiaries from their own financial decisions or from outside creditor claims.

A spendthrift provision can be included in a testamentary trust, a revocable living trust, or an irrevocable trust. The key is that the trust must be properly drafted to meet Ohio's requirements for the protection to be enforceable.

What Is a Dynasty Trust in Ohio?

A dynasty trust is a long-term irrevocable trust designed to hold and distribute assets across multiple generations while minimizing estate taxes and protecting assets from creditors. Ohio allows dynasty trusts to continue for up to 360 years under the Ohio Trust Code, making it one of the more favorable states for this type of planning.

Dynasty trusts are most appropriate for high-net-worth families who want to preserve wealth across generations and take advantage of the generation-skipping transfer tax exemption. They require careful drafting and are significantly more complex than a standard revocable trust or testamentary trust. They are not appropriate for most families but represent an important planning option for those with substantial assets.

This article is for general informational purposes only and does not constitute legal advice. Trust laws and requirements vary based on individual circumstances. Consult a licensed Ohio estate planning attorney for advice specific to your situation.