Testamentary Trusts 101 (brought to you by Lego)

What is a testamentary trust?
You’ve probably heard the phrase testamentary trust, testamentary discretionary trust, TT, TDT, and I want to let you know that they all mean the same thing. It’s just “lawyer speak” for a trust which is set up in your Will which starts on death.
If you’ve heard of a family trust then you’re already ahead of the game because a testamentary trust is very similar to a family trust. They operate in almost an identical way. The main difference is that the testamentary trust is set up in your Will and doesn’t start until you die.
Why do I love testamentary trusts (compared to a simple Will without a TT)?
💫 They can protect the inheritance from bankruptcy and relationship breakdowns
💫 They can protect beneficiaries who can’t look after their money from wasting their inheritance (e. children under 18)
💫 They’re a powerful income tax environment. The government basically gives everybody a tax break who uses a testamentary trust because they recognise that to have the trust come into existence, somebody had to die.
This video uses a very simplified example. It’s important that you obtain customised advice for your specific circumstances from an experienced estate planning lawyer.
If you’re a lawyer, financial adviser or accountant go to www.taralucke.com.au to find out more