Trust' has been used to describe what is
usually known as a Discretionary Family
Trust, established under a will. The
popularity of testamentary trusts arises
from the considerable benefits that can flow
from their establishment.
trust may be controlled by the intended
beneficiary, they do not form part of that
beneficiary's estate. This feature means
a beneficiary's inheritance through a
testamentary trust can be advantageous
in a number of circumstances.
in our society has increased significantly.
Oftenawifewillguaranteeherhusband's
business venture and vice versa. To some
extent we can all be at risk, whether in
high-risk occupations, such as medicine,
or not. However, if someone is forced into
bankruptcy but their inheritance has been
provided through a Testamentary Trust,
it will be protected from creditors.
a Testamentary Trust is unlikely to be the
subject of a Family Court order in the case
of a marriage break-up. It may be regarded as
a financial resource and have some effect on
the terms of a property settlement, but this
outcome is usually preferable to the property
being at the disposal of a Family Court order.
WITH DISABILITIES
variety of disabilities to be unable to properly
manage their financial affairs.
At the same time, families may wish to ensure
that an adequate fund is set up to meet their
beneficiaries' reasonable needs without
affecting any pension rights they may have.
of wishes as to how the trust should
be administered, can be an appropriate
arrangement.
in a range of situations, writes
of de Groots Lawyers.