How Can I Safeguard the Inheritance I Intend to Leave to a Vulnerable Beneficiary?

What can be done if you are concerned about how one of the proposed beneficiaries of your will cope with an inheritance? This could include individuals with addiction or money problems, or a child with special needs.

A Testamentary (Protective) Trust can be a way of ensuring that the beneficiary you wish to provide for under your Will receives the full benefit intended.

The trust is created in a last Will. It does not take effect until after the "settlor" (will-maker) dies. Like all trusts, it allows the creator to stipulate how the assets allocated to the trust will be disbursed.

Under such a trust, assets can, for example, remain “protected” until a child is old enough to be financially responsible. Alternatively, a Testamentary Trust can be tailored to a child’s specific circumstances to provide a way of ensuring a child with disabilities, or special needs, are looked after appropriately. Typically, the beneficiary receives the benefit of the income or capital left to them but cannot deal with it personally. The nominated Trustee manages the trust’s funds and authorises expenditure from it. This can protect a” high risk” or vulnerable beneficiary from losing or squandering their inheritance.

Contact Our Testamentary Trust Lawyers, Sydney NSW