Why set up a testamentary trust
A testamentary trust is something that is set up within the settlor’s will, and does not come into effect until the settlor passes away. You can choose to set up a testamentary trust if you have significant assets that you wish to protect for the benefit of your children or other family members.
DeltaQuest is experienced in the formation and set up of a range of trust types. To learn more, please view our Set Up a Trust section.
Testamentary trust explained
There are many benefits to setting up a testamentary trust, and the sole purpose of such a formation is to benefit the selected beneficiaries. If a testamentary trust is funded and set up correctly, there are a number of ways in which a testamentary trust can prove advantageous.
A testamentary trust is an effective form of asset protection and estate planning, and is designed to ensure that all of the settlor’s assets are correctly transferred after his death in accordance with the trust deed and in the most tax efficient manner. The testamentary trust differs in many respects from a traditional will, as it offers greater levels of security and protection. In addition, testamentary trusts are also highly flexible entities, and enable the beneficiary or beneficiaries to receive their inheritance in an effective manner.
A testamentary trust also offers significant tax benefits to the beneficiaries, as a testamentary trust allows the beneficiaries to either retain their assets or invest the proceeds and the income from the investment allocated to themselves or to their children. A testamentary trust also ensures that the settlor’s estate will simply pass to the beneficiaries, regardless of the beneficiary’s financial circumstances. Many traditional wills do not allow this direct transfer of property if the beneficiary is experiencing financial difficulties.
Print This Post
