Testamentary discretionary trusts
A flexible estate planning structure designed to protect and support your loved ones.
Protecting Your Family’s Future With a Testamentary Discretionary Trust
A testamentary discretionary trust can provide your loved ones with greater protection, flexibility and control over an inheritance after you’re gone.
Rather than assets passing directly to beneficiaries, a testamentary discretionary trust allows assets to be held within a trust structure and managed for the benefit of your chosen beneficiaries.
For families with children, significant assets, a family business, or concerns about protecting an inheritance, a testamentary discretionary trust can form an important part of a carefully prepared estate plan.
What is a testamentary discretionary trust?
A testamentary discretionary trust is a trust created through your Will that comes into existence after your death.
Instead of leaving assets directly to your beneficiaries, your Will can provide for those assets to be held within a trust and managed by people you choose, known as trustees.
The trustees manage the trust assets and make decisions about when and how benefits are provided to your beneficiaries.
A testamentary discretionary trust can continue for many years, providing ongoing support and protection for your family.
Who might benefit from a testamentary discretionary trust?
A testamentary discretionary trust may be worth considering if you:
have children or grandchildren you want to provide for
have a family business or significant assets
want greater protection around an inheritance
have concerns about a beneficiary’s ability to manage money
want flexibility for changing family circumstances
want your estate plan to continue supporting your family long after your death
Every family is different. The right structure depends on your assets, family circumstances and long-term goals.
Is a testamentary discretionary trust right for you?
A testamentary discretionary trust is a powerful planning tool, but it is not suitable for everyone.
The right structure depends on your family, your assets, and what you want to achieve.
At Sun Wills & Estates, we help Queensland families create estate plans that provide clarity, protection, and confidence for the future.
Why consider a testamentary discretionary trust?
A direct inheritance can create challenges. A beneficiary may receive a large sum of money at a time when they are young, vulnerable, experiencing financial difficulties, going through relationship breakdown, or facing creditor issues.
A testamentary discretionary trust provides a structure around that inheritance.
Depending on your circumstances, it may help:
protect an inheritance from relationship breakdown
provide support for children and future generations
protect assets from certain financial risks
provide flexibility around how and when beneficiaries receive benefits
allow trustees to consider each beneficiary’s circumstances over time
provide tax planning opportunities where appropriate
How does a testamentary discretionary trust fit into your estate plan?
A testamentary discretionary trust is created through your Will, but it works alongside your other estate planning documents.
A complete estate plan may include:
Will
Letter of Wishes
Enduring Power of Attorney
Advance Health Directive
superannuation planning, including Binding Death Benefit Nominations where appropriate
Together, these documents create a plan for protecting your family during your lifetime and after your death.
Testamentary Discretionary Trusts
Testamentary Discretionary Trusts Explained
A detailed guide covering how testamentary discretionary trusts work, their benefits, limitations and when they may be suitable.
General information only and not legal advice.
A testamentary discretionary trust is a trust that is established by a Will. This free download explains how a testamentary discretionary trust works and why it can be a powerful strategy in your estate plan [hello, income flexibility and asset protection!]…
This is for you if you want to:
understand two different types of Wills
provide flexibility for loved ones in your estate plan
provide extra protections for loved ones in your estate plan
The information in this ebook is general information only and not legal advice.
Meet Jacqui
DIRECTOR + LAWYER
Hi there! I’m Jacqui, the Founding Director of Sun Wills & Estates. Apart from being a lawyer, I’m also a mum to two beautiful boys...