ADVANTAGES IN A NUTSHELL
Having a testamentary trust in your will:
- Can have asset protection benefits for your beneficiaries, for
instance, by protecting from loss caused by bankruptcy and in some
cases, divorce.
- Provides capital gains and income tax efficiencies.
- Is prudent where a beneficiary to your will is either incapable
of managing their own affairs or vulnerable to exploitation.
A testamentary trust is a trust that is established under a
will. There are three major benefits which flow from utilising a
testamentary trust in your will:
- Ability to split income;
- Asset protection benefits; and
- Other protective benefits.
- Ability to split income
If a beneficiary receives their inheritance in their personal
name, they are taxed on any income and capital gains acquired from
the investment of their inheritance at their personal marginal tax
rate.
