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Trust lawyers

In its simplest terms, a Testamentary Trust is no more than a trust set up on death. Despite this simplicity though, they are extremely useful and valuable things, but they can be complex. There are a raft of reasons to have one in place – but essentially it is because of either asset protection or tax effectiveness, or both.

The Testamentary Trust can be used for children, adults, or even both at the same time. They are one of the greatest devices for adult children who have high risk behavioural characteristics, such as compulsive spendthrifts, or those who may have tendencies towards gambling, drugs or other high-risk lifestyles. Another very common use of Testamentary Trusts is for young children. The law says a child under 18 cannot legally inherit anything – so any inheritance must be held on trust until they turn 18 – although we recommend a much higher age in most instances.

Testamentary Trusts can also be very tax effective, and they are also able to be set up to help those with a family member living with disability who may need special care or support moving forward.

trust lawyers
last will and testament

Potential benefits of a testamentary trust

Testamentary trusts can give you the ability to best protect assets and again to potentially reduce tax paid by beneficiaries from income earned from the estate they inherit.

  • Protecting assets from waste from a high risk beneficiary
  • Protecting assets from a beneficiary’s marital breakdown
  • Protecting assets from a beneficiary’s commercial breakdown
  • Protecting your most vulnerable beneficiaries
  • Reduction in tax – particularly when a beneficiary has a high tax rate
  • Reduction in tax when a partner has a lower income
  • Reduction in tax when minor children and grandchildren are involved

Testamentary trusts – what you need to know

There are as many different types of testamentary trust as there are families- they can be highly customised to meet the specific needs of a whole family, or multiple generations of a family or for one lone person. A testamentary trust can be used for children, or adults, or even both at the same time. They are one of the greatest devices for adult beneficiaries who have high risk behavioural characteristics, such as those with addiction issues or to make sure estates are divided fairly when there are second or subsequent marriages, step parents and step children.

Another very common use is for minor children. The law says a child (that is anyone under 18) cannot legally inherit anything. So any inheritance must be held on trust until he or she (or they) turn 18. Bitter experience tells us though that 18 is a very high-risk age to inherit even a modest estate. An inheritance of even $10,000 can be dangerous; it can all evaporate in a matter of days if the child is unused to having a lump sum.

Without a testamentary trust set up to mandate that the age of inheritance is 21, or 25, or 40, or 80 or whatever age you might decide is appropriate (and different people mature at different times of course) then 18 it is.

You also get to choose the Trustees of the trust – it cannot be overstated how important it is to choose the right trustees for a trust. We often advise clients to appoint two trustees, so that there is a check and a balance on each other; abuse or misuse of trustees powers, or simple laziness, is much less common where a trustee must have another trustee sign off on each and every transaction.

Testamentary trusts are also tax effective. In the case of having two young children, the testamentary trust can distribute approximately $19,000 of income each per year, without any tax coming out. If it were a normal discretionary trust (often called a Family Trust) such as is set up during life, only approximately $500 can be distributed to each child per year before tax is assessed at the top marginal rate. This benefit alone is worth every penny and the costs of setting up a testamentary trust are repaid manyfold in just the first year it operates.

Testamentary trusts can also be used for those with disabilities. A special sort of trust called a protective or special disability trust can be established to look after a disabled person. The Social Security Act allows up to $500,000 to be put into a special disability trust for a person who meets the criteria of disabled and that amount is not factored into any means test when assessing their government benefits. It can also be made so that the money in that trust flows back to other beneficiaries when the disabled person dies, such as the able-bodied brothers and sisters of the disabled.

Testamentary trusts can even be set up for bankruptcies or the entrepreneurial ‘boom or bust’ type of beneficiary. If you worry that your spouse or child is going to be bankrupt or is in a high-risk job where they may be sued, the protection of the trust is vital. It allows a person to inherit the benefit of the money without actually owning it.

Property trusts for step parents and step children to make sure assets flow down generations to blood relatives are also commonplace and to help balance the provision one must make for different classes of dependent beneficiaries to make sure they get their rightful inheritance at the right time.

Protective trusts for the vulnerable, such as those with addictive personalities, or those with spouses who are likely to divorce them are widely used. A testamentary trust can make sure that your estate does not ultimately all go to the divorcing spouse of your child, for instance. Without such a trust in place, any inheritance you leave to a child, or your own spouse, could end up with another family reaping its benefits once it is in the pool of assets open to split on termination of a marriage or de facto relationship.

We can draft any type of testamentary trust to ensure your wishes and your goals for your family are carried through- often the only limit is your imagination.

 

Client testimonials

From individuals to families, from startups to large corporations, professional groups to charitable foundations - we’ve stood beside a diverse range of clients helping them best navigate their legal journey when it comes to protecting assets and securing legacies. Here’s what some of them have to say.

Review for Morgan Solomon
Morgan Solomon
"What we appreciated most about working with Morgan Solomon was his extraordinary ability to absorb and process information on his feet and cut through peripheral issues. A good lawyer needs to remain calm, collected and outcome focussed throughout a tough negotiation. Morgan ticked all of these boxes, and more. He’s also a wonderful guy and really easy to work with."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Brandon Hetherington
Brandon Hetherington
"Brandon and the team and SHL were excellent to deal with. Their advice was clear and articulated in a manner that I could understand. They worked to some critical deadlines that I had which was very important. I would highly recommend and will certainly use their services again in the future. I would like to recommend Brandon Hetherington, Brandon has been amazing. Without his professionalism I probably would of going crazy. He explained everything in layman terms, which was great. Thanks once again, if you need a lawyer this is the place to go."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Jessica Spee
Jessica Spee
"Recently we consulted Solomon Hollet Lawyers to deal with some family matters on my behalf. In relation to a will. They were fantastic. Professional right from the start to the end. They made the process very comforting indeed. Originally I got onto them via a way of a 15 minute free phone call which I found on the internet. Jessica Spee was our lawyer and we established an awesome rapport with her. What was originally thought to be a massive headache for us was made very simple by Jessica. Her staff were professional and outstanding in their customer service delivery. Thanks Jessica your a total professional and I cannot highly recommend her and her company enough. Thanks a heap Jessica"
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Morgan Solomon
Morgan Solomon
"This firm is friendly, helpful and accessible - from the first person that answers the phone, they make you feel welcome and at ease. I had a consultation with Morgan Solomon and cannot recommend him highly enough. His early advice, for which I am incredibly grateful, has most likely saved me from a lengthy and expensive legal battle and many sleepless nights worrying about my situation. Morgan is not only an expert in his field, he is excellent at explaining applicable laws and the pros and cons of different courses of action to his clients. Thank you, Morgan, and everyone at Solomon Hollett Lawyers."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Andrew Bower
Andrew Bower
"Andrew Bower represented me in a very messy business partnership dispute. Andrew’s professional conduct, court mannerisms and high quality of work was amazing! His knowledge of the legal system and attention to detail gave me peace of mind every step of the way. The last 12 months have been a stressful legal roller coater ride and in December Andrew put a successful end to that chapter. I would highly recommend Andrew and I cannot thank him enough. Andrew Bower from Solomon Hollett law firm is an extremely professional, knowledgeable, pro active lawyer that owns the client's problem, and do everything possible to help the client succeed with great care, loyalty, passion and dedication. Strongly recommended. Andrew's professional advice and guidance has saved our business thousands and a lot of heartache. Highly recommend Andrew and Solomon Hollett Lawyers."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Annabel Pizzata
Annabel Pizzata
"We had an excellent experience with Annabel at Solomon Hollett Lawyers recently. Annabel helped us out through an estate matter that we wouldn’t have been able to deal with ourselves. She was very professional, helpful and prompt in all of our interactions. I would recommend them very highly."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Morgan Solomon
Morgan Solomon
"We engaged Solomon Hollett to represent us (executors) in a challenging and frustrating Estate matter. We cannot praise both Morgan Solomon and Matthew Gunn highly enough for the extremely professional and understanding approach they took and their attention to detail. Their knowledge of both the law and estate procedures was second to none and their communication skills were outstanding. We settled the matter at mediation thanks in large part to their support and guidance. I would very strongly recommend them."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Craig Hollett
Craig Hollett
"I recently employed Craig Hollett when my partner required defence in a complex criminal matter. From the outset of this very difficult journey, Craig’s professional and approachable manner put me at ease. Navigating foreign legal processes was incredibly unnerving, but Craig’s extensive knowledge and patient explanation made the experience far less daunting. Craig was always available to me when I required advice and guidance, which made me feel as though there was someone I could trust in the midst of a great deal of turbulence. Although he was kind and reassuring, Craig was straight down the line and made sure I was fully aware of all possible outcomes, even when it was not what I wanted to hear. The compassion and genuine concern he showed was extraordinary, as was his unwavering performance in court. With Craig’s guidance, we were able to obtain the best outcome we could expect, and I will be forever grateful to him. I could not be more pleased with the service that Craig provided and would not hesitate to recommend him."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Andrew Bower
Andrew Bower
"Our experience with Solomon Hollett Lawyers was nothing short of fantastic. We found ourselves in a tough spot when a client unexpectedly canceled a contract early, leaving us hanging with unpaid invoices and other charges for months. Andrew Bower, came highly recommended from another lawyer and lived up to every expectation. Not only were him and his team incredibly knowledgeable about the intricacies of contract law, but they handled our case with the utmost professionalism and expertise. What truly set them apart was their ability to translate all that legal terminology into layman's terms that we could easily grasp. It made navigating the complexities of our situation a breeze. Thanks to their guidance and skillful negotiation, we were able to resolve the matter in our favor. We couldn't be happier with the outcome! They consistently deliver exceptional service, demonstrating proficiency at every juncture. Highly recommended!"
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Morgan Solomon
Morgan Solomon
"Very grateful to be able to deal with Morgan and the rest of the team. They ask the right questions, arrive at the best possible solutions and are extremely thorough. Highly recommended for their professionalism and clarity provided."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Brandon Hetherington
Brandon Hetherington
"The last few months have caused a significant amount of stress for me around an estate matter. I wasn't sure what to expect when I searched for legal assistance since I have never had to use the services of a law firm before. Other Google reviews led me to Solomon Hollett Lawyers where I found Brandon to be very helpful and knowledgeable. Just knowing that he was supporting me in this matter made all the difference and helped to facilitate a positive outcome."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Craig Hollett
Craig Hollett
"We are very grateful to Craig for his outstanding work. Craig was highly professional, clear about his role and what he could do for us and he handled our case with an incisive precision. Craig fully and respectfully explained the processes and complexities of the case in a language that made sense to us and he outlined in detail steps that we had to take. What impressed us most was his willingness to understand the complexities of our Church structures and laws and take on board our principles and concerns. We cannot recommend Craig highly enough."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Andrew Bower
Andrew Bower
"I highly recommend Solomon Hollett Lawyers and in particular Andrew Bower. I was very anxious about my particular situation and Andrew was extremely helpful and knowledgeable. He put my mind at ease and I was grateful to have him in our corner. He was friendly and approachable and explained everything that was happening each step of the way and was also with us at the hearing which we won. I can’t thank him enough."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Brandon Hetherington
Brandon Hetherington
"We had a great experience with Brandon from Solomon Hollett. From the first phone call, I could tell that he had a solid grasp of our situation and what we wanted to achieve. He was very helpful and very responsive throughout our dealings with him. He got everything done in a timely way and we're very happy with the result. Definitely recommended! Thanks, Brandon. "
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Craig Hollett
Craig Hollett
"Craig was very reassuring from the outset, helping our family out of a building jam we found ourselves in. Andrew was also very proficient. With their help, we achieved what we set out to achieve quickly and efficiently. We will certainly contact Craig and Andrew if needed in the future."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Matt Gunn
Matt Gunn
"I highly recommend Matt Gunn and Solomon Hollett lawyers. I had a matter with the executor of my uncles estate. It was highly stressful but Matt not only resolved the issues but was very understanding and professional about it. Many thanks."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Brandon Hetherington
Brandon Hetherington
"Brandon Hetherington has been an absolute Godsend for us in a very difficult and stressful estate matter, which the Executor had been mishandling and dragging on for many years before we bought Brandon in to act. Prior to this, his advice and guidance kept us sane. All our enquiries were handled promptly and saved us from many sleepless nights. Without his help we would still be in estate limbo. We can't thank Brandon and Jessica Spee enough for their professionalism, empathy and support. They have got us through and we can now finally move on. Hopefully we never need their services again but I wouldn't trust anyone else with such important matters."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Annabel Pizzata
Annabel Pizzata
"Annabel from Solomon Hollett Lawyers was extremely reliable, helpful and friendly when dealing with myself and my mum regarding our matter. The services provided were professional and timely, and Annabel communicated with us regularly to ensure we were up to date with the progress of our matter. I’d be more than happy to recommend Annabel and Solomon Hollett Lawyers to anyone with estate issues."
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.
Review for Jessica Spee
Jessica Spee
"Jessica Spee was exceptional helping my partner and I navigating the settlement of our first property. She was incredibly knowledgeable, courteous, punctual and made the which seemed like a daunting task enjoyable . I would highly reccommend Jessica to anyone and everyone"
The privacy of our clients is important to us, but should you wish, we’re more than happy to provide client first names behind each of the testimonials upon request.

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Frequently
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Can’t find what you are looking for?

What do I need to know about a Trust? Do I need one?

Trusts are an integral part of Wills and estate law. They are used to protect assets but also to grow wealth, and can have tax benefits too.

Essentially a trust is merely when you leave an assert or money to someone to hold for the benefit of another person.

For example, if I leave my house to my children who are only 5 years old, the law says they cannot own property until they are 18. So I must leave the house to them to be held on trust for them by someone else until they turn 18, at which time the trustee of the trust transfer the house to them then.

The trustee’s job is to keep it maintained, and look after it, perhaps rent it out, or let my children live in it, until they turn 18 and make those decisions themselves.

You can see that who you appoint as a trustee in this sort of example is very important. Put the wrong person in the role and the property may be at risk.

There are many kinds and many ways they operate. They can be simple, or devilishly complex; they can run for a short time or for almost a century; they can have companies as trustees or beneficiaries or individuals, and they can be customised to make all kinds of different provisions for different people.

What is a Testamentary Trust?

In its simplest terms, a testamentary trust is no more than a trust set up on death. Despite this simplicity though, they are extremely useful and valuable things. Why might you want a testamentary trust? Well the answer to that is not simple – there are a raft of reasons but essentially it is because of either asset protection or tax effectiveness, or both.

The testamentary trust can be used for children, or adults, at even the same time. They are one of the greatest devices for adult children who have high risk behavioural characteristics, such as those with addiction issues.

Another very common use is for children. The law says a child (that is anyone under 18) cannot legally inherit anything. So any inheritance must be held on trust until he or she (or they) turn 18. Bitter experience tells us though that 18 is a very high-risk age to inherit even a modest estate. An inheritance of even $10,000 can be dangerous; it can all be evaporated in a matter of days, if the child is unused to having a lump sum. We have seen young beneficiaries spend hundreds of thousands of dollars in a few short years without actually acquiring any assets by the end of their run. Often what they have acquired though are drug or alcohol habits, gambling problems and a grinding remorse for wasting their inheritance which follows them for the rest of their lives.

Without a testamentary trust set up to mandate that the age of inheritance is 21, or 25, or 40, or 80 or whatever age you might decide is appropriate (and different people mature at different times of course) then 18 it is.

You also get to choose the Trustees of the trust; you might decide that the mother of your children is not the right choice because she has wild spending habits of her own and the risk the trust is used to add to her ever increasing shoe collection is just too high, and you might want to put your sister in charge as she is frugal and takes great joy in meticulous mathematical activities like investing well in property and shares.

It cannot be overstated how important it is to choose the right trustees for a trust. We all know those sorts of people who can resist anything except to temptation, why would you put such a person in charge of the trust? It is like putting the fox in charge of the henhouse. For this reason it is also generally a good idea to appoint two trustees, so that there is a check and a balance on each other; abuse or misuse of trustees powers, or simple laziness, is much less common where a trustee must have another trustee sign off on each and every transaction.

Testamentary trusts are also tax effective. In the case of the two young children, the testamentary trust can distribute approximately $18,000 each per year, without any tax coming out. If it were a normal discretionary (often called a Family Trust) such as is set up during life, only approximately $500 can be distributed to each child per year before tax is assessed. This benefit alone is worth every penny and the costs of setting up a testamentary trust are repaid manyfold in just the first year it operates.

Testamentary trusts can also be used for those with disabilities. A special sort of trust called a protective or special disability trust can be established to look after a disabled person. The Social Security Act allows up to $500,000 to be put into a special disability trust for a person who meets the criteria of disabled and that amount is not factored into any means test when assessing their government benefits. It can also be made so that the money in that trust flows back to other beneficiaries when the disabled person dies, such as the able-bodied brothers and sisters of the disabled.

Testamentary trusts can even be set up for bankrupts. If you worry that your spouse or child is going to be bankrupt or is in a high-risk job where they may be sued, the protection of the trust is vital. It allows a person to inherit the benefit of the money without actually owning it.

Book your free 15 min consultation

Discussing your situation over the phone is often the best way to start, and we’re pleased to offer clients a free 15-minute phone consultation for every inheritance dispute and estate administration or probate matter. This is a great opportunity to let us know more about the assistance you’re seeking, clarify your situation, and allow us to walk you through how best we can help and what’s involved. Our experienced team is here to provide the support and expertise you need.

Fill in your details below

Book your free 15 min consultation

Discussing your situation over the phone is often the best way to start, and we’re pleased to offer clients a free 15-minute phone consultation for every inheritance dispute and estate administration or probate matter. This is a great opportunity to let us know more about the assistance you’re seeking, clarify your situation, and allow us to walk you through how best we can help and what’s involved. Our experienced team is here to provide the support and expertise you need.

Fill in your details below