A Testamentary Trust can often be a useful legal structure to provide further safeguards to your assets and reduce tax payable by your beneficiaries.
The Testamentary Trust is created under a Will and will only be effective upon the death of the Will maker. A trustee who manages the assets of the Trust will need to be nominated upon creation of the trust. This trustee may be an executor of your Will or simply someone that you place great confidence in.
The use of a Testamentary trust is highly recommended if you want to provide additional safeguards for your beneficiaries who are likely to face future creditors or if you wish to highlight a specific purpose under which your assets or wealth is distributed to them. As the assets are not owned by the beneficiaries when held in the Trust, these will not be available for claim by creditors or the spouse of the beneficiaries during divorce proceedings. In addition, tax benefits are also a key feature of the Testamentary Trust due to the ability to split tax payable amongst the beneficiaries. For more information on this, please click here.
To find out if a Testamentary Trust is appropriate for you, call us today for a quick discussion.