What is a Testamentary Trust Will? Should I get one?
Testamentary Trust Wills are quickly becoming one of my most popular Will requests.
A Testamentary Trust is a trust established under a valid Will after the Will maker has died.
In a nutshell, here are a few of the benefits of investing in a Testamentary Trust Will:
If your adult children go through a divorce, the assets should be protected. Your beneficiaries are given the opportunity to minimise tax on any income from their inheritance.
If your child is hopeless at managing money, and/or has a gambling/substance addiction, they don’t need to miss out on inheritance - you can appoint another person to manage their inheritance on their behalf.
If any of your adult children ever become bankrupt, their inheritance will be protected from creditors.
If your surviving partner remarries or re-partners, and they predecease their new partner, their new partner cannot access your family’s assets in the Testamentary Trust.
A Testamentary Trust functions in a similar way to a discretionary family trust, with certain provisions of the Will operating like a trust deed.
With a Testamentary Trust, your beneficiaries receive their inheritance in a trust structure rather than receiving their inheritance outright.
Testamentary Trusts are an essential Estate Planning tool.
Testamentary Trust Wills are typically done with the assistance of a qualified lawyer who practices in Estate Planning and trusts.
If you are considering investing in a Testamentary Trust Will, or have a question about Wills and Estate Planning, call Mark Murnane for an obligation free chat: 0439 106 816.
DISCLAIMER: This article is provided for general information purposes only. It does not constitute specific legal advice or opinion. Although our aim is to provide you with as accurate information as possible, you should not act or rely upon the information in this article without seeking the advice of an experienced lawyer who specialises in the particular area of law relevant to your inquiry. Please do not hesitate to contact Murnane Legal to make further inquiries or to make an appointment to discuss the specifics of your situation.
