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Testamentary trusts are the trusts formed by a Will maker, and they are created concerning the Will, which comes into effect after the death of the Will-writer. The assets set to be distributed to the beneficiaries are kept on hold till then.
One advantage of a testamentary trust Will is that it properly protects the asset until it reaches the beneficiary. Besides, it also provides various other kinds of protection and increases flexibility.
Take a look at the types of testamentary Trust Will and how they function.
The idea of a testamentary trust can be confusing. This is why it is divided into two main types.
A discretionary means the individual who has complete control of the trust fund. The discretionary testamentary trust funds are mainly organised for the beneficiaries as trusted relatives of the deceased.
Here, the responsibility to decide and manage the distribution of assets falls on the Trustee.
Read Also – Role of an Executor
A protective testamentary trust is when the Trustee is free from making decisions. Instead, another person needs to take the role of decision-maker. Here, the Trustee has no control over asset management and distribution.
These trusts are created specifically for the beneficiaries who need help managing their funds. For example, protective testamentary trusts are applied in the case of a minor child or a person with mental disability.
There is a reason why testamentary funds are still as relevant. Testamentary Trust Will Lawyers, Perth, often recommend this type of Trust because of the following benefits.
Now that you know the advantages, check if Testamentary Trust is worth the disadvantages. Check with a will lawyer today to learn more.
Before setting up a testamentary Trust fund for yourself or a close relative, weighing advantages and disadvantages is important. Read about why many are putting their faith in this Trust fund Will instead of the usual Will.
The two types, discretionary and protective testamentary funds, function differently. They are created to cater to different types of Trustees. Estate planning lawyer in Perth suggests setting up a Trust because of their security.
Testamentary Trust Fund Wills is a great way to ensure intergenerational wealth transfer. To fetch these opportunities, learn how to set up a Trust today.