Commercial Real Estate And Testamentary Trusts

03/03/2026 11:00 AM Mark Goodman

You want to know that your commercial property would be in good hands in the event of your death, but at the same time, a lot of people don’t want to take the time to establish a living trust to dictate how assets will be managed while they are still alive. For some, they’d rather leave instructions for how they’d like a trust to be established in the event of their death so that it is created once they’ve left this earth. This is known as a testamentary trust. In today’s blog, we take a closer look at testamentary trusts and their role in commercial real estate.

Testamentary Trusts

A testamentary trust is a specific trust that is created as part of a deceased individual’s last will and testament. In their will, the grantor leaves specific instructions for a named executor for how their assets are to be managed by a trustee and distributed to any beneficiaries. Because of its design, a testamentary trust isn’t established until after the grantor’s death.

In many instances, a testamentary trust is put in place in the event the grantor has minor children or relatives who would stand to inherit assets upon the grantor’s death. However, given their status as a minor, the grantor may wish to create a trust that allows someone else to oversee the trust until the minor reaches adulthood or another age. The grantor will appoint a trustee to oversee the trust, but because it isn’t established until their death, it’s wise to have a conversation with any potential trustees prior to your passing to ensure they are on board with this responsibility. Should they decline this request following your passing, the court may appoint a different trustee or someone else may petition for the role.

If you’re considering creating a trust because you have commercial holdings and you want your beneficiaries to be in good hands in the event of your passing, talk to the team at Commercial Partners. We can help give you some guidance so that you can learn which trust may be right for your unique situation. For more information, or for help with a different commercial real estate matter, connect with the team at Commercial Partners today at (612) 337-2470.