Protective Trust Wills

Protecting family assets

Additionally, protective testamentary trusts can also be a useful means of protecting family assets beyond the lifetime of your vulnerable beneficiary, and down to their children. This can be useful where the vulnerable beneficiary has a spouse or other eligible applicants who may attempt to lay claim to your vulnerable beneficiary’s assets after their death.

However, this should be discussed in detail with your lawyer and the relevant beneficiaries prior to being placed into your Will, as the specifics of a protective trust naturally require restrictions that may not be present in an ordinary inheritance situation.

How protective testamentary trusts work

Putting in place a protective trust in your Will provides a legally structured trust that is designed to protect the interests of the vulnerable beneficiary after your death. The Trustee is required to prioritise the needs of that beneficiary when managing the trust fund to ensure that the funds are used for their care and maintenance and managed competently.

For example, if you have placed a protective trust in your Will for the benefit of a vulnerable child, any assets you leave to them after you die will be held within that trust. The control of the trust will pass to the person or entity that you have nominated. This may be a relative, a Trustee Company or even a co-controlled situation with the relevant beneficiary. The funds are then managed accordingly to provide your child with the funds they need. Depending on the circumstances, this may simply be providing a stream of income to them. In other instances, it may be to cover arrangements such as medical costs, legal services, property maintenance or other requirements.

In addition to creating the protective trust, you also have the power in your Will to specify whom the residue of the trust fund proceeds go after the vulnerable beneficiary passes away. This may be to their children (ie. your grandchildren) or to other beneficiaries (such as your other children).

While a protective trust is a useful, all-around tool for protecting vulnerable beneficiaries, there are also other specialised options. A Special Disability Trust for a vulnerable beneficiary may also be appropriate for your situation and can be discussed with your lawyers as relevant.

Talk to the experts

Placing protective trusts in wills is a sensitive and complex area. Accordingly, you need an experienced estate planning lawyer to provide you with specialist advice and discuss all of the key issues to ensure that your beneficiaries are properly looked after in your absence.

Here at Estate First, we are experts in the area of protective trusts in Wills, Special Disability Trust and much more. We’ve got the expertise to talk you through all of the important considerations and can help guide you through the best strategies for your situation. Get in touch with the team at Estate First today and discover how we can help you with your situation. We’re here to help you when you’re dealing with difficult circumstances. As part of our first consultation, we will also provide you with a written quote for a fixed fee, so you won’t find yourself with any last-minute surprise expenses.