What is a testamentary trust in simple terms?
It is a trust that arises under a will rather than during your lifetime. Whether it is useful depends on your family, assets and objectives.
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A testamentary trust is a trust created through a will. It is sometimes considered where clients want greater control over how an inheritance is held and used over time — including for vulnerable beneficiaries, minors, blended families or longer-term family wealth stewardship.
An outright gift places inherited assets directly with a beneficiary. That may be appropriate in some cases and less suitable in others.
Where protection, timing or ongoing stewardship matters, families sometimes consider whether a trust structure created by the will is a better fit.
A testamentary trust is not automatically right for every estate. Its usefulness depends on the people, assets and objectives involved.
It is a trust that arises under a will rather than during your lifetime. Whether it is useful depends on your family, assets and objectives.
No. Outcomes depend on the structure, the circumstances and how arrangements operate in practice. Advice is required before relying on any protective objective.
It is sometimes considered for that reason. Suitability depends on the beneficiary’s needs and the wider legal and financial circumstances.
Not necessarily. They are more about fit than wealth alone. Whether one is appropriate depends on your circumstances and planning objectives.
Control rests with the trustees appointed under the arrangement. Choosing the right people is a central planning issue and depends on your circumstances.
No tax outcome should be assumed from general information. Any tax consequences depend on individual circumstances and require specific advice.
Knowledge Centre
Testamentary Trusts
A measured overview of when families may consider a testamentary trust, without assuming tax or protection outcomes.
Read topicFamily Wealth
A sensitive general guide to the estate planning issues that commonly arise in blended families and second relationships.
Read topicLife Events
A practical guide to the life events and structural changes that often mean an estate plan should be reviewed.
Read topicNext step
If inheritance protection, vulnerability or longer-term stewardship is on your mind, a tailored discussion can help determine whether a testamentary trust is relevant.