Testamentary Trusts
What is a Testamentary Trust?
A testamentary trust is a trust created in a will that comes into effect upon the death of the person making the will (the testator). The trust assets are then managed and distributed by a trustee according to the terms specified in the will.
Benefits of Testamentary Trusts
Testamentary trusts offer various benefits, including:
- Asset protection for beneficiaries
- Tax planning opportunities
- Control over the distribution of assets
- Protection of assets from creditors
Establishing a Testamentary Trust
To establish a testamentary trust, it is essential to:
- Consult with an experienced estate planning lawyer
- Determine the beneficiaries and terms of the trust
- Name a trustee to manage the trust assets
- Incorporate the trust provisions into your will
Frequently Asked Questions
Can a Testamentary Trust be Challenged?
Yes, testamentary trusts can be challenged in court on various grounds, such as lack of testamentary capacity or undue influence. It is crucial to seek legal advice if you are considering challenging a testamentary trust.
What Taxes Apply to Testamentary Trusts?
Testamentary trusts are subject to taxation on income generated by the trust assets. It is important to consult with a tax professional to understand the tax implications of a testamentary trust.
How Can Wright Street Lawyers Assist with Testamentary Trusts?
Wright Street Lawyers in Adelaide specialise in estate planning and can provide client-focused guidance on establishing and administering testamentary trusts. Our experienced team can help you draft a comprehensive will that includes provisions for a testamentary trust to protect your assets and provide for your loved ones.
For personalised legal advice on testamentary trusts and estate planning, contact Wright Street Lawyers today.
