Wills and Testamentary Trusts

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Wills and Testamentary Trusts
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• The average Australian gets a tax refund of
  2,574. This year, the Low and Middle Income
  Offset of up to 1,080 is also available to some.
• White Mason Lawyers wills and estates lawyers
  can assist with drafting a will to care for your
  family when you are no longer around to do so.
• In certain circumstances, it is advisable to
  include a testamentary trust within your will.

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What is a testamentary trust?

• A testamentary trust is established in a
  persons will, and is activated after their
  death. It is created to hold all or some of a
  persons assets, for the benefit of others, known
  as beneficiaries.
• A trustee is nominated in a will to manage the
  trust assets and is responsible for distributing
  the assets to the beneficiaries as per the terms
  outlined in the will.

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Benefits

• Flexibility and control over when and how your
  beneficiaries receive their inheritance
• The trustee can distribute capital or income to
  any nominated beneficiary at any time where the
  will instructs the trustee to, or where the Will
  allows the trustee to use trust assets for the
  needs and best interests of the beneficiaries.
  For example, you can restrict assets or
  distributions to a particular beneficiary, such
  as young children.

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• You can also set up a life-interest benefit
  allowing a person, for example a spouse, to
  benefit from an asset for their lifetime, after
  which it can be passed on to other family
  members.
• Tax advantages
• Taxable income that is generated by the trust
  can be allocated to the beneficiaries in the most
  tax effective way, for example, distributions to
  minors up to the tax-free threshold for
  childrens expenses.

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• Protection of assets
• The trustee holds the title to the trusts
  assets, so this protects the assets from any
  court proceedings against beneficiaries.
• Contact White Mason Lawyers to discuss whether
  a testamentary trust is the right option for you.