Why do People have Trusts and Why do Children have them?

Why do People have Trusts and Why do Children have them?

When you make your Will you may have wondered why the words “Trust” and “Trustees” were included, why they were included and how Trusts work.

A Trust is when you appoint a “Trustee” to look after property when you die for the benefit of your beneficiaries.

Some common examples of Trusts set up in Wills include Life Estates where a beneficiary has the use and income from a property until their death after which time the property reverts to another beneficiary. People in second marriages with children from a first marriage often set up Life Estates for the benefit of their current spouse with the property to become the property of their children on the death of their spouse.

There are other reasons that people set up Trusts such as minimising tax on their Estate or for the benefit of a disabled relative.

Usually, when a child is a beneficiary under a Will a Trust will be established for the property to be managed by the Trustee until the child comes of age. The age where the child is entitled to the benefit under the Will can vary from 18 years of age to 21 years of age depending on the wishes of the deceased.

When you are making your Will you need to obtain legal advice on the effect of any Trusts and how they will operate. The best legal advice to obtain is from solicitors experienced in Estate planning who understand the advantages and disadvantages in setting up Trusts in your Will. An experienced Wills and Estate lawyer can ensure that your Estate is tax-effective and carries out your wishes in the best way possible.

Our expert Wills and Estate lawyers have extensive experience in Estate planning and can advise you on the best way in which to draft your Will. Taking the time to ensure that your Estate is properly planned not only reassures you but also ensures that your beneficiaries will receive the optimum benefit from your Estate.

At Heckenberg Lawyers we don’t take our clients’ confidence for granted: we work hard to earn it by providing an efficient, cost effective service which puts your interests first and doesn’t cut corners. We take pride in achieving repeat custom and winning clients by word of mouth recommendation.

If you need advice about a Will or an Estate matter please call 02 9221 2779 or email info@hecken.com.au you’ll be glad you did!

See our Will Dispute Lawyer & Contesting Wills page for more information on the Wills & Estates services we provide or contact us for advice specific to your situation.