Testamentary Trusts for Families Who Want Real Protection
A testamentary trust turns your will into a shield - protecting beneficiaries, unlocking tax advantages, and keeping assets inside the family.
- Tax advantages for beneficiary minors
- Asset protection from divorce and creditors
- Flexible distribution for blended families
What's included
- Testamentary trust structure design
- Discretionary vs fixed trust advice
- Trustee appointment and succession planning
- Beneficiary class definitions (children, grandchildren, in-laws)
- Distribution powers and protection clauses
- Tax advice coordination with your accountant
A will with no trust can leave beneficiaries exposed
Without a testamentary trust, everything you leave to your children or grandchildren passes to them directly. That means inheritance is in their name - exposed to their spouse if the marriage ends, exposed to creditors if they run a business, and taxed at the full personal rate for any income it earns.
- Minors' income taxed at full adult rates from dollar one (via trust: taxed as if they were adults)
- Inheritance becomes matrimonial property in a divorce
- Creditors of a bankrupt beneficiary can claim inherited assets
- Young beneficiaries receiving lump sums can spend everything quickly
A clear process, not a legal maze.
Discuss your family and assets
We map out who inherits, their circumstances, and what you're trying to protect - young children, a beneficiary with addiction or disability, business assets, family farms.
Sam designs the trust structure
Testamentary trusts can be discretionary, fixed, or protective. Sam recommends the structure that fits - including who should be trustee and what distribution powers they'll have.
Draft, review, sign
Your will sets up the trust to activate on your death. You review the draft with Sam, changes go in, and we sign the final document with witnesses.
Here's what you get when you work with Sam.
After my father's stroke we needed to restructure quite a bit. Sam took the time to understand the full family picture, not just the legal documents. Felt like working with someone who actually cared.
Frequently asked questions
A testamentary trust is a trust that activates when you die, created by your will. Rather than leaving assets directly to beneficiaries, they're held in trust for them - often giving the trustee discretion over how and when income and capital are distributed.
You may also want to look at
Wills
A clear, legally sound will drafted with your family's circumstances in mind.
Learn moreProtective Trusts
When you want to leave an inheritance, but you're worried about how it will be used, a protective trust gives you a way to provide - without losing control of the protection.
Learn moreSpecial Disability Trusts
For parents of a child with severe disability, a special disability trust lets you provide financially without affecting their Centrelink benefits.
Learn moreReady to set up a testamentary trust?
Book a chat with Sam. We'll talk through your family circumstances and show you whether a testamentary trust structure would genuinely benefit the people you're trying to protect.
- Free 20-minute initial conversation
- Fixed-fee quotes before any work begins
- Home visits available across Adelaide
- Typically 2-3 weeks to signed documents