So, who will be the trustee of a beneficiary's testamentary trust?

The trustee of a testamentary trust (that has been created after your death by your testamentary trust Will) 'controls' the trust for the benefit of the primary beneficiary or beneficiaries.

Most beneficiaries who are adults of sound mind become the trustee of their trust. This makes sense as most adult beneficiaries want to control their inheritance. When a beneficiary is too young, not of sound mind, or is otherwise unable to manage their affairs, the executor acts as trustee for them. If a Will owner knows that a beneficiary won't be able to manage their inheritance, the Will owner can appoint any adult(s) or trustee company to act as the trustee for the vulnerable beneficiary.

Regardless of whether a beneficiary acts as the trustee, the trust assets and trust income are for the benefit of the beneficiary, as protected by Australian law. Trustees still use normal things like bank accounts. shares, and property to manage the inheritance. As the assets are in the name of the trust, and not owned directly by the beneficiary, the inheritance is protected from many third-party threats, and taxes on the inheritance can be minimised. Try our free online tutorial to make an informed choice. https://www.willwizard.com.au/