https://www.deceasedestatelawyersperthwa.com.au/
Protecting a family’s wealth requires following many more things apart from deciding who receives the assets. Many people prefer structures that safeguard assets, guide distributions responsibly and support beneficiaries over the long term. This is what is offered by testamentary trusts. Established through a will, the trust allows selected assets to be managed under clear instructions while shielding them from the risk that beneficiaries may face with the help of testamentary trust lawyers in Perth.
A testamentary trust is a type of trust created under the instructions of the will and which becomes effective on the death of the testator. The executor establishes the trust, after which the designated trustee becomes the legatee to the administration of the assets. Although the beneficiaries have rights to the benefits accrued under the trust, they do not have possession over the assets until such time as the trustee disburses them in compliance with the will.
A living trust is immediate and not subject to probate, but a testamentary trust has to wait until the estate is administered. Many families choose this structure because it aligns with Testamentary Trust law in WA, which outlines how these trusts must operate.
A testamentary trust can only be created with assets that are legally included in the estate of the deceased. These are usually those that belong solely to the testator or assets that can be otherwise directed by their will. In this aspect, here are a few testamentary trust asset types available.
| Asset Type | Description / Examples |
|---|---|
| Real Estate Property | The family homes, land, rental estates, and commercial premises owned solely in the name of the testator. |
| Bank Accounts & Cash | Non-jointly owned savings and transaction accounts. |
| Investment Assets | Directly held shares, bonds, managed funds, and other investment products. |
| Business-related Assets | Plant and equipment, sole-trader business resources, and direct interests in small enterprises. |
| Personal & Collectible Property | Artwork, jewellery, antiques, motor vehicles, and other items of personal value. |
| Estate-acquired Assets | Assets purchased by the executor or trustee after death using estate proceeds, such as replacement investments. |
Such assets may be pooled together in the trust to establish a managed fund that will offer continuous benefits to the nominated beneficiaries. The income earned, be it in the form of rent, dividends, or the growth of the investment, can be paid out at the will of the trustee or re-invested to support future growth. When administering these distributions, families sometimes work with deceased estate lawyers Perth to ensure compliance with estate instructions.
The creation of a testamentary trust does not guarantee that any claims related to the deceased will be transferable into the testamentary trust. Certain classes of assets are not allowed unless special facilities are made beforehand.
Property that is jointly held transfers by operation of law to the survivor co-owner. Since these assets are not part of the estate, they cannot be transferred to a testamentary trust without a prior restructuring.
Property belonging to a company, family trust, or any other organisation does not usually belong to the personal estate of the deceased. Even though a shareholding of a privately owned company can be transmitted by will, the assets upon which the company is based cannot be transferred to a testamentary trust without a change of ownership prior to the demise of the person.
Superannuation and insurance benefits are dealt with by statutory rules and nominations made by the beneficiaries. These proceeds might not be available to include in a testamentary trust unless they are directed to the estate.
The primary benefit of a testamentary is the degree of protection it provides. Since the trustee is the legal owner of trust assets, they are typically not as vulnerable to claims based on the personal liabilities of a beneficiary. Besides this, there are a few more advantages of placing assets in a testamentary trust, particularly when individuals aim for robust Testamentary Trust asset protection.
A testamentary trust presents high levels of protection and flexibility over an extended period to administer the assets of an estate. Real estate, investments, bank accounts, business interests and personal properties of value can all be maintained and managed in the best interest of the selected beneficiaries. A testamentary trust can be a useful and structured solution to families who are interested in systematic management of their estate and long-term stability with the help of expert deceased estate lawyers Perth.