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Protecting your child’s inheritance from unforeseen circumstances such as divorce or bankruptcy is a critical concern. To safeguard your children from such situations, a testamentary trust provides a strategic solution.
This blog discusses how a testamentary trust works and how it can help to protect your child’s future.
A testamentary trust is established by a will of a person and administered after their demise. This trust allows a trustee to administer property or assets on behalf of a beneficiary. This structure gives flexibility, tax advantages and above all, protects your child from legal or financial risk. This will is useful when you plan for the financial security of the juvenile with the help of a separation law firm.
A Testamentary Trust Will is used to protect the inheritance of your child by transferring properties to the supervision of a trustee under the Wills Act 1970 (WA) and administered through the Trustees Act 1962 (WA). It protects against creditors, family law claims, and poor financial choices to provide flexible and tax-efficient distribution based on the needs of the beneficiary.
There are five key benefits of the Testamentary Trust, which are:
You can use testamentary trusts to protect the inheritance of your child in the event of a separation or divorce, as the assets do not form part of the matrimonial property.
Income from the trust can be distributed to multiple beneficiaries, and it also includes minors. By distributing income to lower tax bracket beneficiaries, the trust can minimise the amount of tax paid on its income.
If your beneficiary is young, has a disability or lacks financial experience, then the Testamentary Trust allows an individual to manage and distribute the assets responsibly.
Testamentary trust gives flexibility of how and when to distribute your assets.
To determine the customized approach to establishing a testamentary trust within your family, family lawyers in Perth, WA, can provide professional consultation.
A separation agreement in Western Australia may have a massive impact on inheritance. Without a testamentary trust, your child stands to risk losing their inheritance in case of a relationship property dispute.
These trusts assist in the protection of assets as they remain separate to marriages or de facto relationship property. This is especially important in de facto relationships, which are treated similarly to marriages under separation laws in Perth.
In this condition, it becomes essential to speak with expert property settlement lawyers Perth to explore how a trust can be structured to minimize legal exposure in case of future relationship changes.
If you want to control how and when your child receives an inheritance, then you can opt for a testamentary trust. This is especially important if your loved one is:
This trust helps to protect the inheritance from being lost or misused. To ensure your estate plan safeguards your kids’ future, it is essential to seek separation legal advice Perth.
Including a testamentary trust in your will requires specific legal drafting to ensure compliance with family and trust laws. This process defines your trust’s structure, roles and powers and how it can be integrated to your will. In this aspect, legal professionals experienced in family law Perth can help you to tailor your will to meet both legal requirements and personal goals.
This step ensures that your trust functions effectively to preserve wealth for your children. It also helps to protect your assets from potential legal challenges.
If your child’s case enters into a separation agreement in Western Australia, then the assets within a testamentary trust are usually not considered part of the matrimonial assets. This gives you an extra layer of defence.
However, you should get advice from Perth family lawyers before you make your estate plan. Also, make sure trusts are set up right, so these professionals can give you the protection you want. This is where receiving early legal separation support can make all the difference.
When planning your estate, it’s important to get advice from experts who know about property laws. For parents, a testamentary trust is a very useful estate planning tool. It keeps your child’s inheritance safe from legal problems and ensures their financial future. To know more about this, consult professional deceased estate lawyers Perth today and explore how this strategy can be part of your estate plan.