Testamentary Trusts
What is a Testamentary Trust Will?
Testamentary Trusts are discretionary trusts established by a Will.
They are prepared at the time you sign your Will, form part of your Will documents and the trusts then wait to be formed upon your death.
These trusts can be created to benefit members of your family and non-family members, such as friends and charities.
A common misconception is that Testamentary Trusts can prevent family provision claims against your estate and that they are a means of defeating claims by disappointed beneficiaries.
This is not the case, as the property intended to be placed in the Testamentary Trust enters your estate, and is thus available for a Court to re-distribute under a successful family provision claim.
If you are seeking to avoid a potential family provision claim, this is a matter for a separate discussion.
You should seek independent financial advice from your accountant if you are considering a Testamentary Trust.
Testamentary Trusts are not for every client. Considerations include the initial legal fees involved in drafting a Testamentary Trust Will and the complexity, administration and management required once the trust is in existence.
An experienced estate planning solicitor will consider the size of your estate and the complexity of your circumstances before recommending a Testamentary Trust.
Trusts In Wills
If a Testamentary Trust is not for your circumstances, there are other “simpler” but equally effective trust options to include in a Will.
Other options for Trusts in Wills include:
- Simple Trusts (which are included in our Standard Wills for beneficiaries who are minors and who will not receive their inheritance until they reach a certain age eg. upon becoming 21 years old)
- Protective Trusts which may be required if a beneficiary is vulnerable because of addictions and other financial vulnerability
- Special Disability Trusts which may be required for a beneficiary who is in receipt of a Disability Support Pension that you would like to be unaffected by their inheritance (conditions apply)
Our Approach to Estate Planning
At Ryder Lawyers, our approach to preparing your Will is personal, because we appreciate you entrusting us with the role of making sure your loved ones are looked after if you pass away.
We take the time to meet with all of our clients for an initial one-hour appointment, during which we get to know you and your family circumstances, as well as gather the finer details on what you own.
We make recommendations, answer your questions and advise you of your options.
Do you have a legal matter? Book in for a 15 minute phone call
Meet with our team on a quick and friendly call. Let’s see if we can work together,
