What is a Testamentary Trust?
A testamentary trust is a special type of trust established by a Will. It does not come into effect until after the death of the person making the Will, referred to as the “Testator”.
Upon the death of the Testator, the property and assets of the deceased estate that the Testator wishes to leave to the trust are transferred to a trustee who holds on trust for the benefit of the trust’s beneficiaries. Testamentary trusts have considerable taxation and other financial planning advantages compared to a discretionary (family) trust or an estate with no trust structure. The potential benefits of a testamentary trust are as follows: