A Testamentary Trust Will is a type of Will that establishes a Trust or Trusts upon the death of the testator.

There are two commonly utilised types of testamentary trusts:

  • Discretionary testamentary trusts – the primary beneficiary has the power to remove and appoint the trustee and they can appoint themselves to manage their inheritance inside the trust; and
  • Protective testamentary trusts – beneficiary must take their inheritance via the trust and does not have the option to appoint or remove trustees.

Some benefits of testamentary trusts are as below:

  • Tax Flexibility – trustees can distribute the income from the Trust in a way that minimises the tax burden on the beneficiaries;
  • Asset protection – if any beneficiaries have financial issues, the funds in the Trust cannot be accessed by creditors because the assets belong to Trust and not the individuals; and
  • Capital Gains Tax – the capital gains tax can be spread out to minimise the tax in a manner similar to how the income is spread to minimise tax.

For matters related to testamentary trust wills, please contact us to book a meeting,

Testamentary Trust Wills