Testamentary Trust Wills

Testamentary Trust Wills

Future protection. Flexible options. Smarter estate planning.

At Wakefield Lawyers, we help clients create Wills that do more than just distribute assets, they provide real protection and flexibility for loved ones. A Testamentary Trust Will is an effective estate planning tool that offers wealth management options, tax advantages, and long-term safeguards for beneficiaries.

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What is a Testamentary Trust Will?

A Testamentary Trust Will is a Will that establishes one or more trusts to hold and manage a beneficiary’s inheritance. Unlike a standard Will, where gifts are received directly in a person’s name, a Testamentary Trust keeps the assets in trust and gives beneficiaries the choice to use the trust or not, depending on what suits their circumstances at the time of your passing.

These trusts are only created upon your death, and the terms are set out in the Will. Each trust can be tailored to the needs of individual beneficiaries, providing structure, control, and flexibility.

Why Consider a Testamentary Trust Will?

• Tax-Effective Inheritance - A Testamentary Trust can reduce the tax burden on your beneficiaries. Income earned from inherited assets (e.g., rental income, dividends, interest) can be split between family members, including minors, which often results in significantly lower overall tax.
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• Asset Protection - Testamentary Trusts can safeguard inheritances from:
  
  • Divorce or separation
  • Bankruptcy or litigation
  • Poor financial decision-making
  • Health or addiction issues
  • Minors or young adults lacking financial maturity
  • If a beneficiary is going through a “risky period” at the time of your passing — such as a separation or bankruptcy — the trust structure allows your Executors to retain control of their inheritance until it is safe to transfer control.
• Flexibility for Beneficiaries - Your beneficiaries aren’t locked in. If circumstances are stable, they can choose to receive their inheritance personally, through the trust, or a combination of both. Each beneficiary decides what works best for them, independently of the others.

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When is a Testamentary Trust Will Recommended?

This type of Will is particularly useful if your beneficiaries:

• Will inherit an estate large enough to generate income;
• Are already on a high income;
• Want to reduce their tax liability;
• Need protection from personal or financial risks;
• Would benefit from guidance or control in managing funds.

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Why Choose Wakefield Lawyers?

Our experienced estate planning team works with you to understand your family structure, financial situation, and long-term goals. We offer practical advice and clear explanations to help you decide whether a Testamentary Trust Will is right for you.

We also collaborate with your accountant or financial adviser to ensure your estate plan works in harmony with your overall wealth strategy.

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A Testamentary Trust Will doesn't force any outcome it gives your family options. If you want to protect your loved ones, maximise the value of your estate, and leave behind a Will that truly supports your intentions, we’re here to help.

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