A Standard Will does not often provide for any asset protection for the inherited assets. They often leave inheritances absolutely and does not protect it from creditors, ex partners or persons who can make a claim from the estate.
A common approach in a Will is to create a Testamentary Trust. A testamentary trust is a trust created in a person’s will and does not come into effect until after the death of the person making the will.
With a Testamentary trust, you will need to appoint a Trustee whose duty it will be to carry out the terms of the Trust. The beneficiary(s) is the person who will receive the benefits of the trust.
Through the creation of a Testamentary Trust in a Will, one can protect assets of an estate. Further, if a discretionary trust is created, it can provide assistance in minimising taxation and significant tax savings can be achieved.
These trusts can also be set up to avoid or mitigate issues with taxation, divorce and/or bankruptcy.
Testamentary Trusts are also very flexible and unlike a standard gift/bequest in a Will, can change year to year to suit the needs of your beneficiaries. This is also why it is important to have clauses in your Testamentary Trust that suits your needs. Lawyers at Taylor & Scott can help draft suitable clauses in your Testamentary Trust for your purposes.
It is important when making a Will to contact a lawyer to advise you on whether or not a Testamentary Trust is suitable for your needs.
If you would like to discuss your Will, Probate, Estate Planning or Contested Estate with one of our solicitors, please do not hesitate to contact our office on 1800 600 664, or send a message by completing the contact form.
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