Connolly Suthers offers professional legal advice regarding wills with testamentary discretionary trust. This allows estate planners to protect their inheritance and reduce the taxation on their beneficiaries.
[TOWNSVILLE, 13/09/2018] – Connolly Suthers, an established law firm in Townsville, offers professional consultation and legal advice regarding testamentary discretionary trust wills. This type of will provide more flexibility for trustees and other advantages not available in traditional wills.
Common Problems Encountered in Traditional Wills
In Australia, a traditional will allows estate planners to appoint their own preferred executor and a guardian for taking care of young children (if existing) and name alternative beneficiaries.
However, a traditional will lacks the flexibility that estate planners would need to protect their beneficiaries from taxation and fraud. Additionally, beneficiaries of a traditional will also have to take their inheritance without the choice to refuse it.
Full Control and Flexibility with Testamentary Discretionary Trusts
Testamentary trusts provide estate planners with a flexible alternative to a traditional will.
Beneficiaries of a testamentary trust who are of age have the choice to use the trust or terminate it. Beneficiaries can decide among themselves who gets which assets, how to invest the trust fund and how long the trust will be needed.
For young beneficiaries below 18 years old, estate planners will leave the trust fund to their appointed executor until the children are old enough to gain control of the funds.
Protection from Taxation and Fraud
Connolly Suthers offers professional legal advice for estate planners who are looking into protecting their will and reducing tax deductions for their beneficiaries.
One of the key advantages of a testamentary trust over a traditional will is the ability to protect beneficiaries from taxation. For example, trust funds received by young children will be taxed at normal marginal rates instead of top marginal rates. According to Connolly Suthers, the savings can go up to $16,000 per year.
Another way testamentary trust funds protect assets is by limiting the access of creditors to the funds in case of bankruptcy. The testamentary trust can prevent misuse by litigants in professional negligence claims and fraudulent individuals who want to take advantage of the inheritance.
About Connolly Suthers
Connolly Suthers has been serving the people of Townsville with their expertise and knowledge in family law, criminal law, estate planning and conveyancing. The law firm has an ongoing commitment to giving back to the local community by hiring lawyers from Townsville’s James Cook University and offering a no win, no fee scheme on their legal representation services.
Visit https://www.connollysuthers.com.au to learn more about their estate planning services.