Testamentary Trusts
Frequently asked questions
Cost of Making a Testamentary Trust
The cost of creating a Testamentary Trust is usually incorporated into the cost of preparing your will with a qualified estate planning solicitor.
In NSW, prices can vary depending on the complexity of your estate and how many Trusts are being created.
ESSENTIALS PACKAGE
$800
PLUS GST AND DISBURSEMENTS
Includes:
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Basic Will
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Power of Attorney
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Enduring Guardianship
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Safe custody with Dormer Stanhope
Get the must-haves sorted without the fuss. Our Essentials Package covers the basics to make sure your wishes are clear and protected.
CUSTOM PACKAGE
FROM $950
PLUS GST AND DISBURSEMENTS
Includes:
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A Will tailored to your specific needs, for example, if you own a business, have a blended family, a self-managed super fund, or require a long-term trust (known as a testamentary trust) or certain conditions in your Will
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Power of Attorney
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Enduring Guardianship
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Safe custody with Dormer Stanhope
Types of Testamentary Trusts
There’s no one-size-fits-all approach. The Trust you set up should reflect your family’s unique needs:
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Discretionary Testamentary Trusts give the trustee flexibility to decide how and when to distribute income or capital
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Protective Trusts are tailored for beneficiaries with disabilities or those in high-risk situations who need long-term financial support
Is It Right for You?
Testamentary Trusts add a layer of complexity, but also greater peace of mind. If your estate or family situation requires a little extra thought and protection, it’s worth discussing with an estate planning expert.
What’s the difference between a Testamentary Trust and a Simple Will?
More flexible and protective than a simple will but involves more complexity.
Feature | Simple Will | Testamentary Trust |
|---|---|---|
Asset Distribution | Direct to beneficiary | Managed by Trustee |
Protection | Minimal | Strong protection from external risks |
Tax Planning | Limited | Income splitting and minor tax benefits |
Flexibility | Fixed | Customisable and adaptable |
When might you need one?
You might consider a testamentary trust if:
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You have young children or dependants
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A beneficiary is vulnerable, facing health, disability, or financial challenges
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You want to protect an inheritance from relationship breakdowns or legal claims
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Your family structure is blended or complex
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You’re looking for long-term tax planning benefits
Why would you need a Testamentary Trust?
A Testamentary Trust helps ensure your estate is used wisely, by the right people, at the right time. It can:
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Protect assets from creditors, family disputes or breakdowns, lawsuits, or poor financial decisions
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Provide structured support for children, beneficiaries with disabilities, or those who may require financial guidance
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Enable tax-effective income distribution, particularly when beneficiaries are minors
This added structure can make a meaningful difference in preserving your legacy and ensuring it’s used as you intended.
What is a Testamentary Trust?
A Testamentary Trust is created through your will that only comes into effect after your death. It's a powerful estate planning tool that sets out instructions for how and when your assets are managed and distributed.
Unlike a simple will that passes assets directly to beneficiaries, a Testamentary Trust holds those assets within a protective structure called a Trust and appoints a trustee to manage them. The Trustee can control how and when distributions are made, in accordance with the terms you’ve set.
Sometimes, a basic will isn’t enough. Life is unpredictable and so are the needs of your loved ones. Maybe your beneficiaries are young, going through significant life changes, or facing challenges like disability or financial vulnerability. Maybe you’re concerned about future risks such as relationship breakdowns, business liabilities, or taxation.
A Testamentary Trust, built into your will, offers an extra layer of care, protection, and flexibility for those you leave behind.