In a testamentary trust Will you are able to pass on assets to your beneficiaries by creating a trust, or multiple trusts, in your Will. In this type of Will, you nominate a trustee to administer the trust to the beneficiaries.
There can be significant tax benefits in setting up a testamentary trust particularly for minor beneficiaries. A testamentary trust can also be effective in protecting beneficiaries from creditors, and protecting reckless spenders or intellectually impaired individuals.
The trustee will be responsible for the general management of the trust and distribution of the assets within the trust. As this type of trust is fully discretionary, the trustee will have absolute discretion as to when, how much, and to whom the funds are distributed. It is therefore very important to choose the correct person to act as trustee.
It is possible to create more than one trust within the same Will and to appoint different trustees for each trust.
The lawyers at Matthews Folbigg Parramatta have vast experience in trusts, testamentary trusts, Wills and all aspects of estate planning. We can provide legal advice as to the benefits of each to create a Will tailored to your wishes. Contact us today.
Phillip Brophy – firstname.lastname@example.org or 9635 7966