What are Testamentary Trust Wills?
A Testamentary Trust Will is designed to provide you and your family with a flexible solution to asset protection and distribution
while also allowing for tax effective estate administration.
In technical terms, the Testamentary Trust Will creates a trust for the beneficiaries under the Will that only comes into existence at the time of the death of the willmaker.
This "testamentary trust" is different from more common family trusts that are set up during a person's lifetime often for immediate use within a business or similar structure.
It is a highly flexible document and is prepared with careful consideration to all the factors impacting your family
, your business, family owned property, asset protection and tax effectiveness.
Testamentary Trust Wills are often referred to in a variety of ways which sometimes describe their primary purpose. Terms used may include capital protected, family trust will, inheritance preservation, heritage will or similar. These are largely different ways to describe similar Will documents.
When should I consider a Testamentary Trust Will?
Gray Lawyers Toowoomba assesses every estate planning situation individually and provides a tailor built solution. We don't recommend a Testamentary Trust Will where one of our Standard Personal Wills is sufficient. But as a guide you should consider a Testamentary Trust Will if any of the following situations apply to you:
- you have children under 18 years of age
- your net worth is in excess of $500,000 (including superannuation and life insurance)
- you own a business individually or in partnership with others
- you have property that you don't want sold or split up (eg. farming or grazing property)
- you have children from a previous relationship
- you have concerns about your beneficiaries ability to manage their money
- you have a beneficiary with a disability that requires someone else to manage their money
- you want to protect the assets you are passing on from future relationship breakdowns
- you are considering an uneven distribution of assets to your children
- you wish to create an ongoing legacy for your family, church or charity
- you want to ensure the best possible tax result for your assets
The flexibility of a Testamentary Trust Will provides options for any or all of these situations to be appropriately addressed and provided for.