If you tick any of the following boxes, then you should consider using a testamentary trust in your will:
- You are leaving at least $500,000 (including super and life insurance) to one or more people
- You want to leave an inheritance to minors who can each receive approximately $22,000 tax free income each year from investing the inheritance
- It is important to you that the inheritance is protected the from relationship risks (e.g. divorce or separation)
- It is important to you that the inheritance is protected the from bankruptcy risks
- You are leaving assets to a beneficiary who cannot be trusted to manage their inheritance appropriately and you are worried they will waste it
- An intended beneficiary is currently residing overseas
There are a few more complexities but in essence, these are the main principles of testamentary trusts.
For tailored advice on how testamentary trusts can be used in your estate plan, contact us for an estate planning consultation.
