Protecting your family’s inheritance with a Testamentary Trust

You might not have even heard of a “Testamentary Trust” before, however, now is a perfect opportunity to consider whether this should be included in your Will.

How does a Testamentary Trust work?

A Testamentary Trust allows beneficiaries in your Will (such as a partner or child) to accept their inheritance into a separate Trust, instead of accepting the inheritance into their personal name.

The key benefits of a Testamentary Trust

There are fantastic benefits, including:

• • Saving your family tax after you die
  • Potentially protecting assets in future relationship breakdowns
  • Bankruptcy protection and protection from creditors

Who should consider a Testamentary Trust?

Some people might think Testamentary Trusts are only relevant if you are wealthy or have a complex asset structure. This is not the case. Testamentary Trusts can be extremely beneficial if you tick any of the following boxes:

• You have children
• There will be at least $500,000 of assets to invest in the Testamentary Trust
• You wish to protect assets for a beneficiary or child who might struggle with their own money management
• A beneficiary is at risk of future relationship breakdown

The one chance to secure the benefits

Don’t forget your assets include superannuation and life insurance (which many people hold inside their super without even knowing it), so your total assets might be much higher than you thought.

You only get one chance for your family to access the benefits of a Testamentary Trust – it MUST be included in your Will!