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Frequently Asked Questions (FAQs)
What is a testamentary trust?
A testamentary trust is a trust created in your will that only comes into effect after your death and can hold assets for the benefit of your chosen beneficiaries.
How does a testamentary trust provide tax advantages?
Income distributed to child beneficiaries from a testamentary trust is taxed at adult marginal rates, which may provide tax savings compared with direct gifts in a will.
Who can be a trustee and beneficiary of a testamentary trust?
You may appoint trusted individuals or professional trustees to manage the trust, and beneficiaries can include your spouse, children or other nominees.
Can a testamentary trust protect assets from bankruptcy or divorce?
Assets held within a properly structured testamentary trust are generally less vulnerable to creditors and family law claims than assets owned outright by beneficiaries.
Do I need a will to create a testamentary trust?
Yes, the trust is established by clauses in your will, so you must have a valid will drafted by a solicitor to implement it effectively.





