Testamentary Trusts

Establishment of Trust for your Estate

At Nicholas James Lawyers we recognise that estate matters are complicated issues that need the highest attention and technical knowledge, which is why our capable team of Wills and Estate Lawyers will always give a focused approach to your case to establish the major issues and determine the best course of action.

Here at Nicholas James Lawyers our Wills and Estate Lawyers know the major advantages of Testamentary Trusts and their capacity to safeguard assets and decrease the amount of tax paid by Beneficiaries on inheritance income.

Many people utilise Testamentary Trusts to plan for their family’s future. A Testamentary Trust is one that is established by your Will and takes effect when you pass away. It allows you to keep assets in your Will and have them paid to whoever you choose. This may be anything from your superannuation account to your entire inheritance. There are also tax advantages available through Testamentary Trusts, making them an effective Estate Planning tool.

Testamentary Trusts are commonly divided into two categories:

  • Discretionary Testamentary Trusts: Where the Executor gives the beneficiary the option to take part or all their inheritance via Testamentary Trust. The main Beneficiary has the authority to nominate and remove the Trustee, as well as to administer their inheritance inside the Trust.
  • Protective Testamentary Trusts: Here the Beneficiary must receive their inheritance via the Trust and has no power to appoint or remove Trustees. This is generally the case when the Beneficiary is unable to responsibly manage their inheritance due to factors such as age, disability, or spendthrift tendencies.

Who are the Beneficiaries of the Testamentary Trust?

The main Beneficiary of a Trust is referred to as the ‘Primary Beneficiary’. The Trust also has general Beneficiaries. Relatives of the Primary Beneficiary (including parents, spouses, siblings, children, grandchildren, aunts, and uncles) are usually the general Beneficiaries. Companies and Trusts that the Primary Beneficiary has an interest in, along with charities, can also be general Beneficiaries. The Trustee can distribute funds to any primary or general Beneficiaries at the Trustee’s discretion.

When the Trust’s main Beneficiary is an adult, they are frequently named as Trustee and Appointor. A relative, close family friend, or trusted adviser can be nominated to function as Trustee and Appointor of the Trust if the main Beneficiary is a child or someone who needs support in controlling their financial circumstances.

Our expert team of Wills and Estate Lawyers aim to ensure the protection and preservation of each Beneficiary’s inheritance. Testamentary Trusts can help protect your assets from waste and dissipation or claims on the Beneficiary’s assets due to marital or commercial breakdown when they pass to your Beneficiaries.

Why Nicholas James Estate Lawyers?

As an Integrated Law Firm, we provide a broad spectrum of quality legal services delivered with a cost effective, supportive and personalised approach.

Our expert Wills and Estate Lawyers will help give you peace of mind when it comes to managing your family’s money in the future, and effectively advising about Testamentary Trusts can help you distribute your life savings according to your preferences.

We devote time to our clients and their matters to have a deeper understanding of their situations and legal needs. If you have concerns about Testamentary Trusts, please do not hesitate to contact our experienced Wills & Estates Lawyers for advice to ensure the best interests of your loved ones are being met.

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