WHAT ARE SOME OF THE BENEFITS OF A TESTAMENTARY TRUST?

Protecting minors and vulnerable beneficiaries

One of the significant benefits of a testamentary trust is the ability to provide for minors and vulnerable beneficiaries. By appointing a trustee to manage the trust assets, it ensures that the needs of these beneficiaries are met and that their inheritance is protected until they reach a certain age or specified milestone.

Providing for disabled or special needs beneficiaries

A testamentary trust can be particularly useful for providing financial support to disabled or special needs beneficiaries. The trust can be structured in a way that ensures their ongoing care and allows for the management of assets without jeopardizing their eligibility for government benefits.

Asset protection from external factors (creditors, divorce, etc.)

Assets held within a testamentary trust are generally protected from creditors, potential lawsuits, and claims resulting from divorce settlements. This protection can safeguard the inheritance from external factors and help preserve family wealth for future generations.

Ensuring responsible management of assets for beneficiaries

A testamentary trust ensures responsible management of assets for beneficiaries, especially when they may not have the necessary experience or financial knowledge. The trustee’s fiduciary duty ensures that the assets are managed prudently, and distributions are made in accordance with the testator’s wishes.