Before diving too deep into the specifics of Testamentary Trust Wills and how they can benefit you, it’s helpful to understand what a Trust actually is.
A Trust is a relationship in which one party holds property or assets subject to a duty to use and protect it for the benefit of another. Various terms are used when discussing Trusts, below is a summary of some of these terms.
Basic Concepts of a Trust:
Settlor – The person who creates the Trust
Trustee – The person who holds the property for another’s benefit
Beneficiary – The person who is benefited by the Trust
Fiduciary Relationship – The relationship marked by obligations of the trustee to the beneficiary
Trusts are most commonly created through express terms and in writing. The clearer the terms of a Trust, the better. A Trust will usually specify the time at which the Trust will come to an end, for example when the child beneficiary reaches the age of 21.
Keep following this series on Testamentary Trusts to find out more about how they can benefit you.
If you have further questions please contact us at frank@franklaw.com.au
This is not legal advice.