A Testamentary Trust is a trust created within 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.
Minor beneficiaries of a Testamentary Trust may receive the full tax income threshold tax-free, as opposed to minor beneficiaries in a Family Trust which may pay penalty tax rates on income over certain amounts.
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.
Testamentary Trusts can be used to protect assets and potential beneficiaries from losing their inheritance to creditors, litigants and potential future negligence claims.
Call Andersons on 08 8238 6666 to arrange for an initial consultation about your options for a Testamentary Trust.