Trusts
Setting up a Trust is essential for safeguarding your wealth and providing asset protection for your loved ones. A well-structured trust minimises taxes, avoids probate, and ensures seamless asset transfer. TLS provides personalised guidance to create the right trust for your needs.
Understanding Your Situation
Protect Your Family's Future with a Trust
Trusts can be powerful tools for protecting assets, managing wealth across generations, and minimising tax, but they need to be carefully structured and clearly understood. At TLS, we provide practical, clear advice on Discretionary Trusts (Family Trusts) and Testamentary Discretionary Trusts, tailored to your goals.
We act for individuals, families, and business owners seeking long-term asset protection, estate planning flexibility, and control over succession.
Trusts
What is a Discretionary Trust?
Often called a Family Trust, a Discretionary Trust is a legal structure where a trustee holds and manages assets for the benefit of a group of beneficiaries. The trustee has discretion over how to distribute income and capital.
Discretionary Trusts are commonly used for:
- Asset protection – keeping assets separate from individual ownership
- Income distribution – allowing income to be streamed to family members
- Tax efficiency – managing tax across multiple beneficiaries
Trusts
What is a Testamentary Discretionary Trust?
A Testamentary Discretionary Trust is created through a Will, and only comes into effect after death. Instead of passing assets directly to a beneficiary, the estate places them into a trust, managed by a trustee the beneficiary can appoint.
These trusts provide:
- The same asset protection and income flexibility as a Family Trust
- Tax advantages for minors as income distributed to children is taxed at adult rates, allowing greater use of the tax-free threshold
- More control over how inheritances are used or preserved
Is this you?
Protecting Your Assets for the Future
Whether you’re looking to preserve family wealth, protect vulnerable beneficiaries or support future generations, establishing the right trust can provide long-term certainty and flexibility tailored to your goals.
You Want to Protect Assets from Creditors
Shield your wealth from potential claims, lawsuits or business liabilities by placing assets within a legally protected trust structure.
You Have Minor or Vulnerable Beneficiaries
Ensure children, elderly relatives or dependants with disabilities receive their inheritance responsibly through managed distributions over time.
You Want to Minimise Inheritance Tax
Reduce the tax burden on your estate by transferring assets into trust, potentially removing them from your taxable estate altogether.
You Own a Family Business
Safeguard business continuity and succession by holding company shares in trust, preventing fragmentation across multiple beneficiaries.
You're Concerned About Future Care Costs
Plan ahead to preserve your estate from being depleted by long-term care fees while still meeting your legal obligations.
You Want Control Beyond Your Lifetime
Set clear terms for how and when your assets are distributed, ensuring your wishes are honoured for generations to come.
Key Considerations
Important Factors to Consider When Establishing a Trust
Not Sure Where to Start?
Every legal matter is different. Tell us about your circumstances, and we'll help you find the right legal solution.
Choosing the Right Trust Structure
Different trusts offer different benefits depending on your goals and circumstances.
Protecting Family Assets
Trusts can help preserve wealth for future generations and provide asset protection.
Appointing Suitable Trustees
Select trustees who will manage the trust responsibly and in accordance with its terms.
Supporting Beneficiaries
Trusts can provide flexibility for beneficiaries with varying financial or personal needs.
Long-Term Estate Planning
Consider how a trust fits within your overall succession and wealth management strategy.
Ongoing Administration
Ensure trustees understand their ongoing legal and administrative responsibilities.
Common mistakes to avoid
Preventing Trust Complications.
Many testamentary and family trust disputes arise from simple planning oversights that could have been avoided with proper legal guidance and regular reviews. Some common mistakes include:
- Vague Beneficiary Clauses
- Not Updating Trust Provisions
- Choosing the Wrong Trustee
- Ignoring Tax Implications
- Failing to Fund the Trust
- Overlooking Succession Plans
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Frequently Asked Questions.
A trust is a legal arrangement where a trustee holds and manages assets on behalf of beneficiaries. It allows you to control how and when your assets are distributed, often avoiding probate.
Trusts offer several advantages including avoiding probate, reducing estate taxes, protecting assets from creditors, maintaining privacy, and providing structured distributions for minor or special-needs beneficiaries.
Often called a Family Trust, a Discretionary Trust is a legal structure where a trustee holds and manages assets for the benefit of a group of beneficiaries. The trustee has discretion over how to distribute income and capital. In comparison, a Testamentary Discretionary Trust is created through a Will, and only comes into effect after death. Instead of passing assets directly to a beneficiary, the estate places them into a trust, managed by a trustee the beneficiary can appoint.
Yes, a Will is still recommended alongside a trust. It acts as a safety net to transfer any assets not already placed in the trust, ensuring your entire estate is covered by your plan. At TLS we offer ‘Smarter’ Wills which include Testamentary Discretionary Trusts.
Funding a trust involves retitling assets such as real estate, bank accounts, and investments into the trust’s name. Your estate planning attorney can guide you through the process to ensure all key assets are properly transferred.
TALK TO A LAWYER
Looking for clear and personal advice?
Whether you are planning ahead, managing a deceased estate, or dealing with an estate dispute, our team is here to provide clear, practical and compassionate legal advice.
