What assets can be transferred into a testamentary trust?

The types of assets held in a Testamentary Trust

• Investments;
• Land or property;
• Cash; and.
• Other valuable assets, including paintings, furniture and jewelleries.

Who owns the assets in a testamentary trust?

trustee
Advantages of a Trust. The significant advantage of a testamentary trust is that the assets are owned by one person(s), the trustee, and the benefit of the income and capital of the trust passes to another person/s, the beneficiaries.

Can you add assets to a testamentary trust?

Only assets that arise from testamentary sources or from the death of another person, are entitled to the taxation advantages of testamentary trusts. In the event that any non-testamentary sourced assets are added to the corpus of the trust then the tax concessions will be lost.

Who can a testamentary trust distribute to?

Beneficiaries of testamentary trusts 19. For a testamentary trust established for a surviving spouse, the main beneficiary will either be the spouse or the children (depending on whether the intention is to preserve the assets for the children) and your blood descendants.

Who is the beneficiary of a testamentary trust?

The grantor or settlor is the person who creates the trust in order to transfer his or her assets. The beneficiary is the person or entity who is the recipient of the assets. The trustee handles the trust and manages the assets until the beneficiary takes over.

How are assets removed from a testamentary trust?

Unlike assets in superannuation funds, testamentary trust assets can be removed from the trust, borrowed or used as security. There are no requirements for a spread of investments or audited accounts and a trustee of a discretionary trust can act in a purely self-interested manner.

When does a testamentary trust go into effect?

The testamentary trust only goes into effect after the writer of the will (also known as the testator) dies, which makes the testamentary trust irrevocable. Testamentary trusts are easy to create and provide you with some control over how beneficiaries can use the assets they receive.

How are superannuation benefits transferred in a testamentary trust?

On that basis, the superannuation death benefits would be property transferred to the trustee of the testamentary trust from the estate of the deceased person concerned. It would also appear to be transferred as a result of the Will.