What type of trust is defined by the terms of a deceased person's will?

A testamentary trust is a type of trust that is established according to the instructions laid out in a deceased person's will. This trust comes into effect only after the individual's death and is specifically designed to manage and distribute the assets of the deceased as stipulated in their will. The key aspect is that it does not take effect until the death of the testator (the person who created the will), which distinguishes it from other types of trusts.

In contrast, a revocable trust can be altered or dissolved by the grantor at any time during their lifetime, meaning it does not necessarily reflect the terms of a will after the grantor's passing. An irrevocable trust is permanent once established and cannot be changed without the consent of the beneficiaries. A living trust, similar to a revocable trust, is created during an individual's lifetime and can be modified, again not necessarily coming from the stipulations of a will.

Thus, a testamentary trust is specifically linked to the directives of a will, making it the correct answer in this context.