A Testamentary Trust is a ‘trust’ that is created by your will. It only takes effect when you die & will be administered by a trustee. You will name your Trustee in your Will.
Wills containing Testamentary Trusts are designed to protect assets. The deceased’s assets belong to the trust – not to individual beneficiaries. This gives flexibility on how the capital and income generated by assets in the trust is distributed.
A “discretionary” Testamentary Trust can potentially save tens of thousands or even hundreds of thousands of dollars over its lifetime!
Why choose a Testamentary Trust (or Trusts) in your Will?
- to minimise the tax burden on your beneficiaries;
- to avoid assets being caught up in a divorce settlement;
- to avoid assets being caught up in bankruptcy proceedings;
- if your beneficiaries are under 18 years old (minors);
- if your beneficiaries have diminished mental capacity;
- if you are worried your beneficiaries might squander their inheritance.
A Testamentary Trust Will is more complicated than a simple Will.
However, if you choose a Testamentary Trust Will, your beneficiaries can potentially take advantage of many benefits. It’s essential you get all the details right when creating a Testamentary Trust Will.
Get expert legal advice
V.S. George Lawyers can help you with every step of the process. Our Sydney Wills lawyers will help you consider all your options while setting up your Testamentary Trust Will.
For help setting up your Testamentary Trust Will, call V.S George Lawyers on (02) 9150 6991.