Testamentary Trusts

Testamentary trusts are becoming more prominent given the unprecedented scale of intergenerational wealth transfer.

A testamentary trust is a very effective structure written inside the will that allows the maximum flexibility with the proceeds of a loved one who has passed away.

The two most powerful features of a testamentary trust are:

FLEXIBILITY ON THE INCOME AND CAPITAL OF THE ESTATE

From a tax efficiency perspective, trustees of testamentary trusts can control the level of income distributed to certain beneficiaries with assistance from their trust financial adviser. This control of distributions could also allow beneficiaries to qualify for certain pensions and other government benefits.

BENEFICIARY PROTECTION

Your trusted financial adviser can assist your executors to determine the most effective way of managing the trust on behalf of beneficiaries. Some factors to take into account as part of effective management include risk management, taxation and other issues. If there are young children this also allows protection for them to allow access to capital when they reach a mature age where they can prudently manage their inheritance. Testamentary trusts are not always suitable but your trusted financial adviser can give guidance on the appropriateness of one given your circumstances.

Our team of estate planning specialists are ready to evaluate your situation and provide the most appropriate strategy to give you and your family peace of mind.

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