Wills & Estates
Testamentary Trusts
A Testamentary Trust is a trust created and attached to a Will. A Testamentary Trust varies from a Family Trust particularly in relation to the taxation advantages it provides to minor beneficiaries.
A Testamentary Trust should only be prepared by an experienced solicitor. Call Andersons on 8238 6666 to arrange for an initial consultation.
Minor beneficiaries of a Testamentary Trust receive the full tax income threshold of $6,000 tax-free, as opposed to minor beneficiaries in a Family Trust which may pay penalty tax rates on income over approximately $1,100.
Other advantages of a Testamentary Trust include if you have a beneficiary, perhaps a child, who has an intellectual disability. Part of your estate could be left for their benefit in a Testamentary Trust thereby protecting your loved one from being taken advantage of. Alternatively you could protect potential beneficiaries from losing their inheritance to creditors, litigants and potential future negligence claims.
