What defines a testamentary trust?

A testamentary trust is specifically defined as a trust that is created as part of a will and comes into effect only after the testator's death. This type of trust is established through the provisions outlined in the decedent's will, which dictates how the trust will be managed and how the assets will be distributed to the beneficiaries after the testator passes away. A testamentary trust provides a mechanism to manage and protect the assets for the beneficiaries in accordance with the testator's wishes.

The other options do not accurately capture the essence of a testamentary trust. For instance, a trust established during a person's lifetime refers to an inter vivos trust, not a testamentary one. Requirements for notarization pertain to the execution of a will or other legal documents, but not specifically to the nature of a testamentary trust itself. Additionally, while some trusts may be designed for tax efficiency, the primary defining characteristic of a testamentary trust is its initiation following the death of the testator, rather than a focus on tax avoidance strategies.