The Will nominates one or more Trustees to control the trust, giving them control over which of the nominated beneficiaries receive distributions from the trust at any given time. This can be in the form of income generated by the trust or the division of the assets of the trust. Nominated Trustees can be beneficiaries, an independent 3rd party with experience in managing trusts, or a combination of both.
Because the deceased persons’ assets are transferred to a trust rather than directly to each of the beneficiaries individually, testamentary trusts can provide significant benefits over a standard Will. Allowing for tax-effective distribution of assets, providing a greater degree of asset protection, and greater flexibility in how and when distributions are made to ensure benefits are maximised.
A testamentary trust can be validly established for up to 80 years and dissolved by the Trustee(s) at any time, with assets distributed to the nominated beneficiaries. This allows Will-makers to plan for their estate to benefit multiple generations of their family, particularly grandchildren.