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Testamentary Trusts

A testamentary trust is a trust established by the Will and does not come into effect until after the will maker’s death. Testamentary trusts are commonly used for tax minimisation and asset protection for the beneficiaries.

The trust is designed to hold some or all of the estate assets for the benefit of the beneficiaries until such time is stipulated in the trust to distribute the assets.

Assets owned by a testamentary trust are held by the trustee and are not owned by the beneficiary personally. This provides a level of protection to the beneficiary in the event of bankruptcy or relationship breakdown. A trust can also legally protect the inheritance from potential squandering or mismanagement by the beneficiary.