A Testamentary Trust is a trust that is established within your Will. It is generally a discretionary trust, where the Trustee has full discretion about who benefits, and to what extent, under the trust.
The two most significant advantages for a Will maker and the nominated beneficiaries in employing a testamentary trust are the tax benefits and the protection of assets for the beneficiaries.
The trust will come into effect on the death of the Testator. At this time, the specified deceased estate asset is transferred to the trustee, who holds the assets in trust for the future benefit of the beneficiaries.
If you are responsible for administering a Testamentary Trust or wish to establish one as part of your Will, you should consider seeking expert legal advice from an experienced Estate Planning Lawyer.
