Will and Testament
Property includes all assets, as listed in a will. Image – Canva
  • A testamentary trust can be useful in managing a property when one passes away
  • This includes when you don't wish beneficiaries, such a children, to access large portions of your real estate portfolio

Testamentary trusts are used in Wills to manage your property after your death.

Your trustee may be an individual or an institution.

The trust is created when you make your Will and comes into operation upon your death.

When to Use a Testamentary Trust?

A testamentary trust is useful in many different circumstances, inter alia:

  • ensuring that your property is being managed professionally and tax liability is reduced;
  • where you do not want beneficiaries, such as children, to have access to large portions of your estate all at once, or you wish to prevent people from claiming against your estate or that of your beneficiaries;
  • where you have young children, pets, or ill/disabled people you wish to be provided for at a certain or particular ages.

Choosing a Trustee

Choose a trustee who you trust and is 18 years or older. This is often a family member or close friend but can be an institution such as a bank or a trust company.

Duties and Powers of a Trustee

Your trustee will be responsible for distributing your trust property according to the trust.

Your trustee must always act in the best interest of the beneficiaries and take reasonable care.

Depending on what you have specified in your Will, your trustee may have the power to use their discretion in deciding which beneficiaries receive certain property, or in deciding whether to distribute the property at all.

In your Will you should specify if there is any particular property you would like to be transferred to any specific beneficiaries.

Seek professional advice about your estate as every case is different.

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Disclaimer: This article contains general information and should at no time be considered legal advice to the reader. The reader should always verify their situation with their legal advisors before taking any further steps. 



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