A Testamentary Trust is a trust that is established under your Will that only comes into operation after your death.  When a Trust is created, your assets are passed into the Trust for the benefit of those that you have named as beneficiaries. The Trust is controlled and managed however, by someone else, called a Trustee.

Advantages of a Testamentary Trust

There are many advantages for creating a Testamentary Trust:

  • There are a range of tax advantages that both you and your beneficiaries of the Trust can enjoy.
  • A testamentary trust can offer pension protection for your beneficiaries as the assets of a trust aren’t currently taken into account when establishing pension eligibility.
  • Assets held inside the Trust are not held in the personal name of the beneficiary; therefore they are protected and can't be seized if a marriage or commercial partnership breaks down.

Is a Testamentary Trust right for you?

We can help you decide whether a Testamentary Trust is right for you, and provide you with advice on whether the income generated by your Estate would be sufficient to operate the Trust and Trustee remuneration that will be payable on an ongoing basis.

Testamentary Trusts can be complex to set up but once in place provide you with the reassurance that your inheritance is safe and satisfies your intentions.

Please contact our Wills and Estate Planning team to find out more about Testamentary Trusts.