Testamentary Trusts

Testamentary Trusts Lawyers Sydney

These have become the buzz word for modern estate planning. And for good reason. In appropriate circumstances, they can significantly enhance the value of your estate.

A testamentary trust is a trust established in your will and it usually begins operation when you die. Leigh Adams Lawyers always considers the appropriateness of using testamentary trusts in the wills that we recommend.

They can take various forms. Every family is different, and every client’s wishes are different. Where a testamentary trust could be used, it is a matter of fine-tuning the testamentary trust concept to fit the circumstances of each client’s personal situation. That is where we can assist you.

We can ask you about your immediate and extended family and suggest ways of ensuring that if used, the testamentary trust can give your estate an income tax and capital gains tax advantage that it would not otherwise have. These advantages arise from the availability of income splitting and legitimate tax free thresholds in most circumstances which can even exceed the income tax and capital gains tax advantages you could get in a family discretionary trust (being a trust outside your will).

We assist by providing advice that will give maximum flexibility to your testamentary trust during its lifetime. Flexibility is important because no-one can predict the future. And with a carefully chosen trustee, the testamentary trust can continue to give income and capital gains benefits for many years into the future.

Our advice can extend to discussing asset protection for your estate and how the testamentary trust could be crafted to ensure that maximum protection is given to the assets you have worked so hard for during your working life. This discussion may include a review of the exposure of any of your beneficiaries to claims by their creditors. Sometimes a beneficiary might run a particularly vulnerable business and could be facing bankruptcy down the track. We can help our clients by discussing ways of using a testamentary trust to adequately and fairly deal with such a situation.

Other claims against beneficiaries can suddenly arise when their marriage breaks up and the beneficiary finds themselves in the Family Court. We discuss these issues with you and help you find a way forward which you are comfortable with – using a testamentary trust.

We also assist our clients by identifying children who may have special physical needs or who are otherwise disabled. Sometimes, a testamentary trust can be used to assist them and other times, a disability trust is more suitable. In either case, we can fully inform you of the alternatives so that you can make an informed decision.

A testamentary trust can be an excellent mechanism to deal with the wishes of each partner where there is more than one set of children. We can take you through the various alternatives available and assist you in coming up with an arrangement which works for both partners.

If you have any questions, or want to make an appointment to discuss your needs, then please call Leigh on 02 9570 7844.