Testamentary Trusts

Teece Hodgson & Ward has expertise at the forefront of legal practice in Wills and Estates Law, including testamentary trusts.

A testamentary trust in a will is similar to a discretionary trust established in a person’s lifetime under which you appoint a trustee to administer certain assets for the benefit of a group of beneficiaries. The difference is that a testamentary trust is created in your will and does not take effect until you die.

Benefits of testamentary trusts can be considerable, ranging from significantly reducing tax payable on income distributed for the benefit of your children under 18 years of age, to protecting assets passing to your children from risks presented by divorce or bankruptcy.

Testamentary trusts are especially useful where the person making the will has adult children who have children of their own. In this case, a testamentary trust can be established for each adult child and can include their children as beneficiaries. This gives each adult child a chance to take control of their own part of the estate as well as the flexibility to create a tax-effective trust for their own family now or later.

In some cases, the person making the will may wish to establish a protected trust which aims to reduce the risk that a beneficiary’s share of their estate might be exposed to claims by creditors, a former spouse or ex-partner. Protected trusts require careful consideration, expert drafting and authoritative advice from lawyers fully familiar with these matters.

Your particular circumstances must be carefully considered before advising on and preparing a testamentary trust. Teece Hodgson & Ward will help you to decide whether a testamentary trust is appropriate and the best solution for you.

To enlist the support of experts, please contact:

Richard Neal

Deborah Linwood

John Maitland

Lynn Beeston

 

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Testamentary Trusts Guide