Discretionary Trusts and your will

Discretionary trusts are established to provide:

  1. Asset protection;
  2. Tax minimization through the ability to income split and make different distributions of profit from year to year; and
  3. Flexibility in being able to use discretion from year to year in how profits are to be distributed.

Discretionary trusts are an important investment vehicle but to avoid unintended consequences, they need to be:

  1. Drafted appropriately for your circumstances;
  2. Used appropriately;
  3. Operated appropriately; and
  4. Considered in your estate planning.

We do not recommend “off-the-shelf trusts.” One size does not fit all.

Your will “gifts” assets in your name. Assets held in trusts are not in your name. Your trust is separate and independent from you. If you pass away, your trust does not – it continues. Who will control that trust when you pass away and will the beneficiary of the trust be treated as you had intended?

Trust deeds need to be:
  1. Properly set up; and
  2. Reviewed and amended as necessary to ensure that when you pass away your estate is divided as you intended.

If you have a trust, your estate planning must involve a review of your trust and may involve an amendment to your trust.

Speak to one of our expert lawyers in our Trusts and Estates team at Antunes Lawyers.

If you have questions, contact our team today.

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The articles on this website comprise legal general information and not legal advice. The general information presented here must not be relied upon without legal advice being sought. In the event that you wish to obtain legal advice on the contents of this general information you may do so by contacting our office or your existing solicitor.