Think outside the square with a Testamentary Trust
A testamentary trust is a unique arrangement you can include in your Will and it’s not just for the super wealthy. It’s a flexible tool that helps you plan your estate in a way that fits your family’s needs. Instead of directly passing your assets to family members like a traditional Will, you create a trust that holds your assets, with family members as beneficiaries. Here are some good reasons why you might want to consider a testamentary trust:
Helping Young or Inexperienced Beneficiaries
If you have kids, grandkids or others in your family who might not be financially mature yet, a testamentary trust can help. The trustee controls the assets until they’re old enough or responsible enough to manage them. You can choose the age or milestones they need to reach before taking control of their inheritance.
Protecting Your Assets
A testamentary trust is a great way to help protect your assets. If you’re worried about family members going through bankruptcy, getting divorced or dealing with other financial troubles, a trust can help to keep your assets safe from those risks.
Smart Tax Planning
A testamentary trust is a useful tool for tax planning where there are beneficiaries who are under 18. Because minors can claim the tax-free threshold on trust income it reduces the taxes your beneficiaries need to pay. This is especially helpful if you have significant assets involved.
At Norton Legal we specialise in advising on and creating testamentary trusts. We’re here to help you understand how this works and to make sure your estate planning goals are met the right way.
Why Asset Protection is So Important:
When it comes to protecting your wealth, asset protection is key. It’s about assisting your hard-earned money and property to go where you want without any issues along the way. Here’s why asset protection matters:
Navigating Family Drama
If your family’s dynamics are a bit complicated—maybe someone’s going through a divorce or there’s a chance someone might contest your Will—putting your assets in a trust can help protect them to ensure your beneficiaries receive what you’ve left them.
Protecting from Lawsuits
If you or your family members work in high-risk professions where lawsuits are a real threat, asset protection becomes important. A trust can help to shield your assets from potential legal claims, so your family’s financial future remains secure.
Shielding from Creditors and Debt
In today’s litigious world, it’s crucial to protect your assets from creditors and debtors. Asset protection strategies mitigate in protecting your wealth from outside financial pressures, ensuring your legacy stays secure for future generations.
Testamentary trusts and asset protection are clever estate planning tools. They help safeguard your wealth, mitigate against disputes and ensure your legacy is passed on just the way you intend.
If you’d like to learn more or get started on creating your own estate plan, give us a call at 9314 7320 or reach out to us today! We’re here to help!
