In this edition of ‘It depends’, partner Hayley Mitchell talks about whether you should have one or more testamentary trusts in your Will.
Hello and welcome to another edition of It Depends. I’m going to be talking about whether you should have one or more testamentary trusts in your Will.
Should I have one or more testamentary trusts in my Will?
Good question, and the answer is it really does depend. Each individual’s circumstances are quite different. So, the answer will be different.
What should I consider?
Couple of major things that you should consider when looking at how many testamentary trusts to include are who are your intended beneficiaries? If you’re planning to leave your estate to your children, you need to have a think about how your children get along together and what are their personal circumstances. If you leave their inheritance to them in one testamentary trust, for example, that can be quite difficult to manage through a number of family groups. So, that’s a scenario where you might consider multiple testamentary trusts one for each of your children. But on the flip side, you would also want to consider what is the value of your estate going to be because you also need to take into account the costs to administer the testamentary trusts after death. And of course, multiple trusts are going to be well, usually going to be more expensive than a single testamentary trust. Typically, if you have a smaller value estate, the advantages of having multiple testamentary trusts will dwindle in comparison to the costs. Now that’s not to say that you shouldn’t have multiple testamentary trusts, but it’s something that you need to consider carefully.
Should I seek advice?
The answer to this question is going to be very individual and will really depend on your personal circumstances and the circumstances of your intended beneficiaries. So, you need to have a good discussion with your advisers and your solicitor when going through the terms of your Will, as to whether or not you have one or multiple testamentary trusts and there will be pros and cons for each decision. It’s a matter for you to weigh up what you think is the best decision for you and your family.
If you would like our advice about testamentary trusts or your estate planning, contact a member of our Private Clients team.