08 June 2018
Wills - Testamentary trusts
Good afternoon,
We are preparing a will for a client and, in the event of her death, she would like her investment property to continue to be leased and the rental income to be held on trust for the benefit of her minor children.
How do we provide for this in her will?
We specifically exclude financial and investment advice from our retainer and have advised the client to seek advice from an accountant/taxation lawyer re CGT etc.
Thank you.
Thank you for the question,
A trust will need to be established, either via a testamentary trust in the will using the By Lawyers ‘Testamentary Discretionary Trust Provisions – Extensive’ precedent, or by the executor as appointor after the death of the testator pursuant to a simple trust in the will using the precedent clause ‘Trustee – Separate trustee for minor beneficiary’ found in the Library of Clauses in the Wills guide.
Such a trust will need to appoint a trustee and be specific about the terms of the trust, making sure to deal with all issues including tenancy, rent, maintenance, outgoings and vesting of both the income and then the asset itself.
Regards
Mentor
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