Will Creating a Testamentary Trust – Essential for Estate Planning & Legal Professionals
A Will Creating a Testamentary Trust is a legally structured document that ensures assets are managed and distributed according to the testator’s wishes, providing long-term financial security for beneficiaries. This type of will incorporates a testamentary trust, which takes effect upon the testator’s passing, allowing for greater control over asset distribution, tax advantages, and protection for vulnerable beneficiaries. It is an essential tool for individuals, estate planners, and legal professionals aiming to secure and manage inheritance efficiently.
Will Creating a Testamentary Trust
A testamentary trust is a trust created by will and is usually a discretionary trust. The testator of a will creates a trust and directs the trustee to hold property in accordance with the terms of the trust for specified beneficiaries.
At some future time the trustee distributes the property to the beneficiaries of that trust. These trusts are often recommended by financial planners and accountants. They are very useful for parents of small children (minor beneficiaries).
Testamentary trusts tend to be driven more by the needs of the beneficiaries than by tax considerations. If a testamentary trust fails, the property will usually be held on resulting trusts for the testator’s residuary estate. A trust has two main advantages for a will maker and the nominated beneficiaries asset protection; and income splitting.
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Why You Need a Will Including a Testamentary Trust
A will including a testamentary trust is a strategic way to ensure long-term financial protection for your beneficiaries. This type of will establishes a trust upon your passing, allowing you to control how and when your assets are distributed. It is particularly useful for those with young children, dependents with special needs, or complex financial situations.
With our testamentary trust will template, you can:
- Protect assets from creditors or family disputes
- Provide structured inheritance payments for minor children
- Ensure tax-effective wealth distribution for beneficiaries
- Appoint a reliable trustee to manage funds responsibly
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Secure financial stability for your family’s future
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Will Creating Testamentary Trust Includes
This Download Includes:
Will + Testamentary Trust (approx 8 pages)
Will Signing Instructions
Wills Checklist
Free Legal Drafting Booklet to help guide you through the process.
A testamentary trust provides a structured and controlled approach to managing and distributing your estate, offering benefits ranging from asset protection to efficient tax management. It allows you to tailor your estate plan to meet your specific needs and those of your beneficiaries.
Asset Protection:
- Protection from Creditors: A testamentary trust can help protect assets from creditors of the beneficiaries. If a beneficiary has financial troubles, the assets held in the trust may be shielded from creditors.
- Legal Protection: Assets in a testamentary trust are managed by a trustee, which can provide an additional layer of legal protection for those assets.
Control Over Distribution:
- Specific Instructions: You can specify how and when the assets should be distributed. For example, you might want to distribute funds to a beneficiary only when they reach a certain age or achieve specific milestones.
- Conditional Disbursements: The trust can include conditions for distribution, such as requirements for education, health, or other needs.
Manage Complex Estates:
- Professional Management: A testamentary trust allows for professional management of assets. A trustee, often a financial institution or a trusted individual, can handle complex investments and estate management.
- Ongoing Management: For estates that require ongoing management or have complex assets, a testamentary trust ensures that these assets are managed effectively and according to your wishes.
Tax Benefits:
- Income Splitting: In some cases, a testamentary trust can provide tax advantages through income splitting. Income generated by the trust may be distributed to beneficiaries in lower tax brackets, potentially reducing the overall tax burden.
- Tax Deferral: Depending on the jurisdiction and the specifics of the trust, some tax benefits or deferrals might be available.
Protect Vulnerable Beneficiaries:
- Minors and Dependents: A testamentary trust can protect assets intended for minor children or dependents who may not be capable of managing large sums of money themselves.
- Special Needs: If a beneficiary has special needs, a testamentary trust can ensure that their financial needs are met without jeopardising their eligibility for government benefits.
Maintain Privacy:
- Confidentiality: While the terms of the will become a public record during probate, the terms of the testamentary trust itself can remain private. This can help keep details of your estate and its distribution confidential.
Flexibility and Adaptability:
- Customisable Terms: The trust can be tailored to fit specific family needs, including providing for varying degrees of support or protection depending on the beneficiaries’ circumstances.
Preserve Family Wealth:
- Long-Term Planning: A testamentary trust can help in preserving family wealth across generations, ensuring that assets are managed and distributed in a way that aligns with your long-term vision.
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Will Checklist 
Will Signing Instructions
Legal Drafting Booklet
Our legal drafting booklet to guide you through the necessary steps in editing your documents
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