Secure Your Legacy with a Testamentary Trust
At Robbins Watson Solicitors, we understand the importance of protecting your family’s future. A testamentary trust is a powerful estate planning tool that offers flexibility, asset protection, and tax advantages for your beneficiaries.
What Is a Testamentary Trust?
A testamentary trust is a discretionary trust established through your Will, coming into effect upon your death. Unlike a standard family trust created during your lifetime, a testamentary trust is activated by your Will and managed by a trustee for the benefit of your chosen beneficiaries.
Benefits of a Testamentary Trust
- Asset Protection: Assets held within the trust are legally owned by the trustee, not the beneficiaries. This structure can shield assets from creditors, bankruptcy proceedings, and family law disputes.
- Tax Efficiency: Income distributed to minor beneficiaries through a testamentary trust is taxed at adult marginal rates, allowing each minor to receive up to the full adult tax-free threshold (currently $18,200) before incurring tax. This can result in significant tax savings for families.
- Controlled Distribution: You can set specific terms and conditions for how and when your assets are distributed, ensuring that beneficiaries receive their inheritance in a manner aligned with your wishes.
Is a Testamentary Trust Right for You?
Consider a testamentary trust if you:
- Have minor children or beneficiaries with special needs.
- Wish to protect assets from potential claims due to divorce or bankruptcy.
- Desire tax-effective income distribution among family members.
- Seek to maintain control over how your estate is managed and distributed after your passing.
Take the Next Step
Planning for the future is a profound act of care. Our experienced team is here to guide you through the process of establishing a testamentary trust tailored to your unique circumstances
Contact us today to get started:
- Call us on 07 5576 9999
- Book an appointment online by clicking here
Fill out our online enquiry form by clicking here