Testamentary Trust

2nd February 2018

Testamentary Trust (also referred to as a Will Trust) offers greater control over estate planning and distribution to beneficiaries compared to simple wills.

A Testamentary Trust is as a trust established by a will, the benefits being:
– Maximum flexibility;
– Better asset protection from third parties; and
– Tax planning benefits

Note that the trust does not come into existence until the person who created the Testamentary Trust in their Will has died.

Most Testamentary Trusts nominate a primary beneficiary (such as an adult child) and then allow for secondary beneficiaries such as the spouse of the adult child, grand children etc.

Commonly, a beneficiary of a Testamentary Trust is the surviving spouse or child of a deceased party. It is possible to have multiple Testamentary Trusts in a will – one for each primary beneficiary.

If you need assistance with this or any other tax matters, please do not hesitate to get in touch via email at torit@hensonandco.com.au or phone (08) 8431 1644