Estate Planning


Testamentary trusts

Access to capital

Importantly, a testamentary trust can give the trustee choice as to when and how beneficiaries receive their estate proceeds.

For example, you are a beneficiary needing $100,000 to repay your mortgage. A testamentary trust can be structured to allow a capital distribution from the trust, or a loan from the trust. You could then use this money to repay your mortgage, reducing the reliance on banks.

Trusts generally run for a maximum of 80 years. It is important to remember that an individual’s circumstances are always unique.

We’ve provided you with just some examples of the benefits of testamentary trusts. However, the outcomes will vary depending on your personal circumstances and the costs involved may outweigh any benefits received.

Depending on your family situation you may look at whether a testamentary trust may be of benefit to you. This applies both in your own will or in the will that you know you are a beneficiary of.