Secure Your Legacy with a Testamentary Trust
A testamentary trust is a powerful estate planning tool that can offer long-term protection for your assets and your loved ones. At M de Mestre Lawyers, we assist clients across the Northern Beaches with tailored advice on how to set up and manage a testamentary trust will, ensuring your legacy is preserved and distributed according to your wishes.
Whether you’re drafting your will, updating your estate plan, or concerned about how a loved one’s testamentary trust is being administered, our experienced estate planning lawyers can guide you through the process with clarity and care.
What Is a Testamentary Trust?
A testamentary trust is a legal structure created within a will. Instead of distributing assets directly to beneficiaries, a testamentary trust holds those assets in a trust, managed by a trustee, and distributes them over time, or under certain conditions.
This type of will offers more protection than a standard will, especially when:
- Beneficiaries are minors, vulnerable, or financially inexperienced
- You want to reduce tax burdens on your estate
- You’re concerned about family breakdowns, remarriage, or creditors
- You own a business, property portfolio, or other complex assets
Benefits of a Testamentary Trust
Setting up a testamentary trust offers several benefits for both the will-maker and the beneficiaries, including:
- Asset protection from creditors, family law proceedings, or irresponsible spending
- Tax advantages, particularly for minor beneficiaries who may be entitled to concessional tax treatment
- Flexibility in how and when beneficiaries receive their inheritance
- Control over how your assets are used or managed long after your passing
Who Needs a Testamentary Trust?
A testamentary trust may be especially useful if:
- You have young children or dependants with special needs
- You want to provide for a second spouse while protecting assets for children from a previous relationship
- You own a business or significant investments
- You have concerns about beneficiaries’ financial responsibility or risk exposure
Our estate planning solicitors can help you assess whether a testamentary trust is right for your situation and how best to structure it.
Testamentary Trust Disputes
While testamentary trusts can help prevent disputes, they can also be the source of conflict when:
- The terms of the trust are unclear
- There is a disagreement about the trustee’s actions or suitability
- A beneficiary believes they have been unfairly treated
- The trust is not being administered properly
If you’re involved in a dispute over a testamentary trust, we can help you understand your rights and navigate the best path forward, whether through negotiation, mediation, or court proceedings if required.
Why Choose M de Mestre Lawyers?
At M de Mestre Lawyers, we bring a personalised and compassionate approach to estate planning. Based on the Northern Beaches, we understand the local community and pride ourselves on delivering high-quality legal support that’s both practical and forward-thinking.
Speak to a Testamentary Trust Lawyer on the Northern Beaches
If you’re considering including a testamentary trust in your will or are facing a dispute involving a testamentary trust will, we’re here to help.
Our team will work with you to create a strong estate plan that gives you peace of mind.
- Visit us at 27/90 Mona Vale Road, Warriewood NSW 2102,
- Call us on +61 (02) 9913 1182
- email [email protected],
- book an appointment online to discuss your legal needs.
Testamentary Trust FAQS
What’s the difference between a testamentary trust and a standard will?
A standard will distributes your assets immediately to beneficiaries. A testamentary trust allows those assets to be managed within a trust, offering greater control, tax benefits, and asset protection, particularly useful for children or complex estates.
- Spouses, de facto partners, or former partners
- Children, stepchildren, or grandchildren
- Parents of the deceased or parents of the deceased’s children
- Anyone financially dependent on the deceased
- Carers of the deceased
Can a testamentary trust be challenged?
Yes. While testamentary trusts offer more structure, they can still be challenged under certain circumstances, for example, if someone believes the deceased lacked capacity, was influenced unfairly, or if the terms are unclear. We can advise you on setting it up properly or resolving any disputes.
Can I include more than one trust in my will?
Yes, you can create multiple testamentary trusts within a single will, for example, one for each child or beneficiary. Each trust can have separate terms and trustees, depending on your preferences and family situation.
Do testamentary trust wills cost more to set up?
They are typically more detailed and require careful legal drafting, so yes, they cost more than a basic will. However, they often save money in the long term through tax advantages and reduced risk of disputes.
