If your estate is reasonably substantial there may be a benefit in making a will containing testamentary trust provisions which creates an entity similar to a discretionary family trust that will operate after your death.

There can be significant income tax, succession planning and asset protection benefits in having a testamentary trust.  For instance, if you have children or grandchildren as beneficiaries,  the testamentary trust  may provide for income distributions made to those beneficiaries to provide for their education and living expenses.  This may be tax free if under the tax free threshold, and has the added effect of reducing the tax liability otherwise payable on the income earned by the assets in your estate.

Again it is important that wills incorporating testamentary trusts be correctly drawn.

Our contacts:
Trevor Kuhle Solicitor