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Wills & Succession
7. Testamentary Trusts
Authors: Savage Julia
Firm / Chambers:
Last updated: 24 Aug 2015
- A testamentary trust is a trust that is created by a will as opposed to a trust that is created in life by a trust deed. A testamentary trust’s property comes from the testator’s estate.
- The trust is usually set up for the purpose of providing for dependent children such as minors or disabled children who are financially dependent on the testator or a surviving spouse.
- A will that creates a testamentary trust will include the following:
- appointment of at least one trustee to manage the trust’s property or the rules for appointment of a trustee;
- a list of the property from the estate that is to become trust property;
- instructions on how trust property it is to be invested and its purpose;
- a ‘preservation age’ (the age at which the beneficiary or beneficiaries may take their benefit from the trust);
- the powers of the trustee and beneficiary; and
- any other rules and restrictions that the testator may wish to place on the trust.
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