Wills & Estates

Trusts

A variety of trusts are available that serve different purposes, including the minimisation of tax and protection of assets.

Clinch Long Woodbridge is experienced in advising on and establishing all types of trusts. These include family, unit, superannuation and testamentary discretionary trusts as some examples.

Your circumstances will be reviewed and we can then recommend whether a trust is suitable in helping you to achieve your objectives, and if so, which type is the most appropriate vehicle to use.

Testamentary Discretionary Trusts

Increasingly we find that testamentary discretionary trusts provide solutions that our clients are seeking for proper distribution of their estates in their will.

Benefits for clients and their families and other beneficiaries include:

  • Taxation advantages: Testamentary discretionary trusts enable income splitting within beneficiaries’ families
  • Asset protection: Testamentary discretionary trusts can protect the inheritance you leave to your beneficiaries in the event of a breakdown in their marriage or relationship. It can also protect assets in the event of a business failure or personal bankruptcy experienced by a beneficiary.

Frequently Asked Questions

What is the difference between a Testamentary Discretionary Trust and a Family Discretionary Trust?

A Testamentary Discretionary Trust is simply a trust in your Will whereby your appointed trustee/s have discretion as to who and when they distribute assets to.  Such a trust therefore has no application until you die and the preceding conditions set out in your Will are followed by your Executor and Trustee.  A Family Discretionary Trust is set up during your lifetime and does not typically terminate on your death, irrespective of your role in setting up or administering the trust.

Are Trusts still worth the time, effort and cost these days?

Yes, depending on your specific financial and personal circumstances if they are carefully drafted.  In appropriate circumstances, trusts continue to offer asset protection, tax, relationship breakdown and creditor protection benefits.

Who will manage our Family Trust on my death?

The Trustee of the Trust and any Appointor of new trustees will have important roles to play on your death.  It is crucial to the continued operation of your Family Trust that the terms of the Trust Deed and your personal Estate Planning work together so as to avoid unnecessary stress, cost and uncertainty on your death or disability.  The Executors and Trustees of your Will may become or appoint new trustees to your family trust if required.

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