What is a Testamentary Trust?

What is estate planning and why is a Will important?
January 15, 2016

What is a Testamentary Trust?

A testamentary trust is simply a trust established by a Will.

A testamentary trust can provide tax benefits.  It can also protect your assets by ensuring control as to how assets and income can be accessed.

Rather than all assets being distributed a testamentary trust keeps some or all assets in trust for the benefit of specific beneficiaries.  A Trustee (chosen by you) will have discretion as to who receives trust income and restrictions can apply.

If you have a disabled child or you have concerns regarding a family member’s ability to use money wisely a testamentary trust can be established to ensure your assets and income are not frittered away.

If you have concerns regarding the financial status of a beneficiary or his or her marriage a testamentary trust can provide valuable protection in the case of divorce or bankruptcy.

For further information about Wills, Estate planning or contesting a Will please call Polson Legal.