Discretionary Testamentary Trusts

What is a Discretionary Testamentary Trust?

A discretionary testamentary trust is a trust that is established through a Will and only comes into effect after the Will-maker passes away.

Rather than leaving assets directly to a beneficiary, the Will leaves them to a trust, to be managed by a trustee on behalf of one or more beneficiaries.

Discretionary trusts offer greater flexibility and protection than a simple gift under a Will. The trustee can decide how and when to distribute income or capital to the beneficiaries, taking into account their needs, circumstances, tax benefits of the timing of distribution, including relying on any tax concessions for minors and take into consider any risks as they arise.

These trusts can be especially useful if you:

• Have minor children and would like to benefit from distributions to minor beneficiaries;
• If your estate will be approximately $500,000 and over;
• Wish to manage how wealth is passed down across generations;

At Brazel Moore Lawyers, we can help you determine whether including a discretionary testamentary trust in your estate plan is right for you. We’ll work with you to create a tailored strategy that protects your assets and supports your loved ones into the future.