Testamentary Disposition

What Does Testamentary Disposition Mean?

Testamentary disposition refers to the transfer or distribution of property that takes effect only upon the death of the transferor or testator. The giver retains full control of the property during their lifetime.

Insuranceopedia Explains Testamentary Disposition

Testamentary disposition can be made through a will or an inter vivos donation. A life insurance policy may also be considered a testamentary disposition if the proceeds payable upon the policyholder’s death are arranged through settlement options. Because that payout goes to whoever is named on the policy rather than passing through the will, getting the beneficiary designation right is what actually decides where the money ends up, which is why life insurance beneficiary rules matter for anyone using a policy this way.

Additionally, testamentary disposition refers to the execution of a deceased person’s wishes as outlined in their last will and testament, specifying how their assets should be distributed upon their death among the individuals named in the document.