What is the difference between a Testamentary Discretionary Trust and a Family Discretionary Trust?

<p>A Testamentary Discretionary Trust is simply a trust in your Will whereby your appointed trustee/s have discretion as to who and when they distribute assets to. Such a trust therefore has no application until you die and the preceding conditions set out in your Will are followed by your Executor and Trustee. A Family Discretionary Trust is set up during your lifetime and does not typically terminate on your death, irrespective of your role in setting up or administering the trust.</p>

Are Trusts still worth the time, effort and cost these days?

<div class="et_pb_module et_pb_toggle et_pb_toggle_1 et_pb_toggle_item et_pb_toggle_open"> <div class="et_pb_toggle_content clearfix"> <p>Yes, depending on your specific financial and personal circumstances if they are carefully drafted. In appropriate circumstances, trusts continue to offer asset protection, tax, relationship breakdown and creditor protection benefits.</p> </div> </div> <div class="et_pb_module et_pb_toggle et_pb_toggle_2 et_pb_toggle_item et_pb_toggle_close"></div>

Who will manage our Family Trust on my death?

<div class="et_pb_section et_pb_section_2 et_section_regular"> <div class="et_pb_row et_pb_row_1 et_pb_equal_columns et_pb_row_1-4_3-4"> <div class="et_pb_column et_pb_column_3_4 et_pb_column_2 et_pb_css_mix_blend_mode_passthrough et-last-child"> <div class="et_pb_module et_pb_toggle et_pb_toggle_2 et_pb_toggle_item et_pb_toggle_open"> <div class="et_pb_toggle_content clearfix"> <p>The Trustee of the Trust and any Appointor of new trustees will have important roles to play on your death. It is crucial to the continued operation of your Family Trust that the terms of the Trust Deed and your personal Estate Planning work together so as to avoid unnecessary stress, cost and uncertainty on your death or disability. The Executors and Trustees of your Will may become or appoint new trustees to your family trust if required.</p> </div> </div> </div> </div> </div> <div class="et_pb_section et_pb_section_4 et_pb_with_background et_section_regular"> <div class="et_pb_row et_pb_row_2"> <div class="et_pb_column et_pb_column_4_4 et_pb_column_3 et_pb_css_mix_blend_mode_passthrough et-last-child"> <div class="et_pb_module et_pb_text et_pb_text_4 boldme et_pb_text_align_center et_pb_bg_layout_light"> <div class="et_pb_text_inner"></div> </div> </div> </div> </div>

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A variety of trusts are available that serve different purposes, including the minimisation of tax and protection of assets. Long Saad Woodbridge is experienced in advising on and establishing all types of trusts. These include family, unit, superannuation and testamentary discretionary trusts as an example.

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A variety of trusts are available that serve different purposes, including the minimisation of tax and protection of assets.

Long Saad Woodbridge is experienced in advising on and establishing all types of trusts. These include family, unit, superannuation and testamentary discretionary trusts as some examples.

Your circumstances will be reviewed, and we can then recommend whether a trust is suitable in helping you to achieve your objectives, and if so, which type is the most appropriate vehicle to use.

Testamentary Discretionary Trusts

Increasingly, we find that testamentary discretionary trusts provide solutions that our clients are seeking for proper distribution of their estates in their will.

Benefits for clients and their families and other beneficiaries include:

Taxation advantages: Testamentary discretionary trusts enable income splitting within beneficiaries’ families
Asset protection: Testamentary discretionary trusts can protect the inheritance you leave to your beneficiaries in the event of a breakdown in their marriage or relationship. It can also protect assets in the event of a business failure or personal bankruptcy experienced by a beneficiary.

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No matter where you are in Australia, our highly experienced lawyers can provide highly personalised legal services to meet a diverse range of needs across all areas of Trusts.

A Testamentary Discretionary Trust is simply a trust in your Will whereby your appointed trustee/s have discretion as to who and when they distribute assets to. Such a trust therefore has no application until you die and the preceding conditions set out in your Will are followed by your Executor and Trustee. A Family Discretionary Trust is set up during your lifetime and does not typically terminate on your death, irrespective of your role in setting up or administering the trust.
The Trustee of the Trust and any Appointor of new trustees will have important roles to play on your death. It is crucial to the continued operation of your Family Trust that the terms of the Trust Deed and your personal Estate Planning work together so as to avoid unnecessary stress, cost and uncertainty on your death or disability. The Executors and Trustees of your Will may become or appoint new trustees to your family trust if required.

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No matter where you are in Australia, our highly experienced lawyers can provide highly personalised legal services to meet a diverse range of needs across all areas of Trusts.