What is a testamentary trust
A trust is an asset protection strategy that is available to anyone wishing to preserve their wealth. There are many varieties of trusts available and it is important to select the right trust for your personal requirements. A testamentary trust is a particular type of trust that is established by a settlor, and will not be effective until the settlor or ‘testator’ has passed away.
DeltaQuest offer a wide range of asset protection and trust services. To find out more, please view our Offshore Trust Services page.
Testamentary trust explained
A testamentary trust is set up for the benefit of the beneficiaries and has similar features to a family trust, such as the ability of the settlor to decide which beneficiaries of the trust will receive the income. As a testamentary trust comes into effect upon the death of the settlor and is established under a will. Setting up a testamentary trust will enable the beneficiary to benefit from the favorable tax advantages.
When setting up a testamentary trust, it is important to have the four key party members in order for the trust to be a fully operational legal entity. A testamentary trust must consist of the settlor, the beneficiaries, the trustee and the protector. As the person wishing to establish the trust, the settlor will appoint a trustee, who is responsible for the management and administration of the trust. The protector is the individual responsible for supervising the administration of the trust in compliance with the settlor’s wishes, whilst the beneficiaries are those who will ultimately benefit from the formation of the trust.
Print This Post
