Will Trusts
Will trust is the name given to trusts which have been written into a will and may also be known as a testamentary trust. Like the many different types of trusts available, a will trust is another way of securing your assets after you pass away. Writing a will trust will guarantee your assets will be distributed exactly how and to whom you wish.
Unlike a living trust or an intervivos trust which is set up and comes into being during one's lifetime, a will trust may only start when the settlor or testator passes away. It is important to remember that because a will trust is created after you die, you are not able to amend or revoke it: the will trust becomes irrevocable.
A traditional will may be suitable for you if you have relatively small assets which can be divided up easily. However, this is often not the case. It may be beneficial to set up a trust within your will or a will trust if you have:
- complex financial situations such as larger assets or estates.
- complex personal situations such a large families, complicated familial situations (i.e. such as a divorcees or step families), or if there are no obvious beneficiaries.
- beneficiaries who are unable to manage assets for themselves.
- closely held business interests.
It is important to discuss any type of will trust with your chosen trustees as they are legally responsible for the management of the trust and therefore any tax implications. Different will trusts are susceptible to various different taxes and tax exemptions and therefore it may be beneficial to enlist the help of an independent financial advisor:
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