PRECEDENTS ONLINE

Will including Testamentary Trust

Download Will including a Testamentary Trust in word format.   Save Will including Testamentary Trust  and reuse as you need.

Will Including 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.

This Will Including Testamentary Trust contains 8 pages.

 

 

testamentary trust
Will-testamentary-trust-simple-compressed

FREE TESTAMENTARY TRUST SAMPLE

 

I have found Precedents Online to be very useful for my business.  I have also used them for personal legal documents.  Simple and easy to use.  I don’t have to fill out any forms or subscribe.  I can simply download the document I need and reuse it when I need it.  

Alan

Director, Promoworld

Great service. Fast response and a good price.

Easy to follow the download procedure.  

Would definitely use again.

Jim

Director, Domane Tax & Accounting

I have used Precedents Online since starting up my business over 5 years ago.  There are many documents I was able to download and use to help with the start and running of my online business.

Amanda King

Director, By The Horns

Precedents Online sells legal documents to the legal profession in Australia. The online legal documents are supplied by Kalde Pty Ltd. Most of the copyright in the works available on this site vests in Kalde Pty Ltd and the documents themselves have been created by practising lawyers.

Legal precedents sold on this site are available for immediate use.  Precedents shown on this site have been drafted by practicing lawyers and kept up to date with changes in the law.

Precedents Online. Powered by Kalde & Associates Commercial Lawyers.

 

TESTAMENTARY TRUSTS

 

1  Introduction

A testamentary trust is a trust created by will. It 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 testamentary trust for specified beneficiaries. At some future time the trustee distributes the property to the beneficiaries of that trust.

Testamentary 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 testamentary trust has two main advantages for a will maker and the nominated beneficiaries asset protection; and income splitting.

2  Asset protection

Many clients are concerned about protecting their assets. They want to make sure that the assets remain within the family and are used to benefit family members.

In particular, clients are concerned about:

(a)  their beneficiaries becoming bankrupt, especially those that are involved in high risk businesses;
(b)  their beneficiaries becoming divorced and their assets being split in the divorce;
(c)  spendthrift or minor children;
(d)  ensuring that the surviving spouse will pass on their assets to their children upon that person’s death; or
(e)  looking after children and disabled relatives.

The advantage of a testamentary trust is that the assets are owned by the trustee, and the benefit of the income and capital of the trust passes to the beneficiaries. This separation of control and benefit allows testamentary trusts to protect assets from any legal action involving the beneficiaries and/or misuse of those assets. The terms of the testamentary trust are set out in the will.

3  Taxation benefits

Testamentary trusts can benefit where people have children under 18 and a sizeable estate. The estate may be sizeable as the result of the sale of a business, from amounts held in a superannuation fund, or from the proceeds expected to be received from an insurance policy.

Children under 18 receiving income from a testamentary trust are taxed as though they are adults. Distribution of income to minors is taxed in the hands of minors at normal marginal rates. They therefore get the benefit of the tax-free threshold and low rates of tax. All family members may utilise their income tax free thresholds. Any income, capital gains and franked dividends can be distributed among all the family beneficiaries each year in the most tax-efficient way. The tax concessions also apply to any income and capital gains derived from assets acquired from the reinvestment of moneys received from the original inherited assets.

4  Precedents

  1. Letter advising testamentary trust
  2. Letter enclosing will and signing instructions
  3. Will creating one testamentary trust
  4. Will creating multiple testamentary trusts

 

 Contact Us:  support@precedentsonline.com.au

 

Estate Planning Essentials – Check List

What you need to know about Estate Planning   Estate Planning Essentials - Check List An estate plan is a combination of documents that specify how you want your assets (including money) to be handled when you die. They normally include a Will (with or without...

Thinking of a advertising your business online?

Thinking of a advertising your business online with a ‘provider’ company’s site in exchange for fees.  You will need one of these.   Online Advertising Agreement A company places its ads on a ‘provider’ company’s site in exchange for fees. The agreement covers: Terms...

How can I prepare for being sick or isolated?

How can I prepare for being sick, or isolated? If you are in isolation or unwell, you can appoint someone to take care of your affairs for you.  A Power of Attorney will appoint someone to manage your affairs if you are unable. An Enduring Guardian will appoint...

Recover Your Debt

Letters of Demand The first step in recovering a debt is well worded letters of demand.  Initial letters of demand should be polite so that a commercial relationship can be preserved if the non-payment is merely an oversight. The intention is to let the recipient know...

error: Content is protected !!