Oct 18

Testamentary Trusts

Testamentary Trusts – Take control and gain peace of mind

By creating a testamentary trust, your long term plans for your estate can be fulfilled. The process is simple and the peace of mind is priceless.

These are just some of the many benefits of Testamentary Trusts:

  • benefits of estate tax reduction strategies.
  • restriction of access to the assets and income of the estate by your beneficiaries.
  • ability to provide care for the mentally disabled.

Testamentary Trusts Case Study

Mark and Rebecca loved travelling and often took their children Jessica and Michelle on day trips along the coast on weekends and holidays. Unfortunately, on one of the weekend holidays, the family was in a serious car crash, killing Mark and Rebecca.

Although both children survived, Jessica’s back was broken and her hospital bills and ongoing care turned out to be far more costly than Michelle’s.

In their Wills, both Mark and Rebecca had equally divided their money and assets left to their children. However, the executor of Mark and Rebecca’s estate, Rebecca’s mother, felt that with Jessica’s ongoing care, her financial needs were far greater than Michelle’s. Rebecca’s mother feared that if she gave Jessica a greater share than what was outlined in the Wills, she may be held liable by Michelle when she was older.

If Mark and Rebecca had seen a professional financial planner, they would likely have been advised to arrange testamentary trusts for Jessica and Michelle as well as another trust to provide for unseen or unequal needs.


It is extremely important to seek professional financial advice first. This advice will assist you make the best decisions for you and your family’s circumstances and establish an estate plan that fulfils your wishes.

Your financial planner can help you take control of your assets and income – while capitalising on your tax efficiency – to ensure your estate is distributed according to your wishes.

By being in control, you and your family can enjoy peace of mind. Talk to your financial planner about testamentary trusts today.

Source: Lonsdale Financial Group Limited


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Testamentary Trusts


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