In our opinion, the primary reason for implementing a testamentary discretionary trust is asset protection; any tax benefit should be considered an added bonus - because as we have recently seen government tax policy change quickly change.

That said we thought it might be helpful to provide a brief synopsis of the taxation of testamentary trusts

The proposed changes will impose a flat 30% tax on discretionary trust income, with limited exemptions and no refunds for lower-rate beneficiaries. Existing testamentary trusts are grandfathered. The key unknown is whether minors will retain their current tax advantages.

Testamentary trusts remain a valuable estate planning tool, even as the tax landscape changes. The non-tax benefits—asset protection, flexibility, and control—are as important as ever.

Since Covid-19 the law has stretched the definition of “presence” to include “virtual presence”. In the context your will, power of attorney and guardianship documents, we can now witness a will remotely, provided we adhere to strict protocols.

Here is what you need to know about remote witnessing and execution.

Did you know? Estate disputes often start because someone wasn’t told they could make a claim. A recent NSW case shows why notifying everyone who might have a claim is crucial for fairness—and avoiding family drama.

The power of discretionary trusts for intergenerational wealth transfer

What Happens to Estate Assets When a Loved One Passes Away?

It all begins with an idea.

It all begins with an idea.