Definition - What does Testamentary Disposition mean?
Testamentary disposition refers to the transfer or disposition of a property that becomes effective only upon the transferer's or testator's death. The giver of the property continues to exercise total control of the property while still alive.
Insuranceopedia explains Testamentary Disposition
Testamentary disposition may be made through a will or a inter vivos donation. A life insurance policy may be considered a testamentary disposition when the proceeds payable upon the policyholder's death are arranged under the settlement options.
Testamentary disposition also refers to the execution of a dead person's statement in his last will and testament specifying the partitioning of his assets upon his death among the persons whose names he would mention in the document.
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