Would Your Testamentary Trust Provisions Meet the Exemption from the Proposed 30% Minimum Tax on Discretionary Trusts?
A testamentary trust which comes into operation on or after 1 July 2028 may be caught by the proposed 30% minimum tax on discretionary trusts if its potential beneficiaries include a trust, company or other entity (e.g. corporate beneficiaries and family trusts).
Earlier this week, the Government released further guidance around the proposed taxes. The Explanatory Memorandum makes it clear that exemptions from the proposed 30% minimum tax will be available to testamentary trusts that have been created for a ‘genuine testamentary purpose’ and which meet certain criteria.
The four things I would never leave out of my own Will.
1. Testamentary Trust, not a Direct Gift: A testamentary trust is created by your Will and comes into effect after your death. Income distributed to a beneficiary under 18 is generally taxed at adult marginal rates rather than the penalty minor rates.
The impact of Marriage on Your Will
Does Getting Married Affect My Will? Short answer – yes, it does. In Victoria, getting married automatically revokes your existing will. Entirely. This can be especially problematic for blended families.
Impact of Divorce on Your Will
Short answer – yes, it does. But perhaps not in the way you may have thought.
Unlike marriage, divorce does not automatically revoke your entire will in Victoria. Instead, it does something more surgical and potentially just as consequential.
Don’t Leave Your Loved Ones Guessing: Why Every Victorian Needs a Will
Making a valid Will is one of the most considerate things you can do for the people who love you.
Life Events That Mean You Should Review Your Will in Victoria
Knowing when to review your will is just as important as writing one. An outdated estate plan can have unintended consequences, with certain life events automatically affecting your estate plan.
Reach out to Simmons Legal for advice on whether or not your documents need a review.
Estate Planning for Blended Families in Victoria
Wills for blended families in Victoria often include special legal structures to help ensure both your current partner and your biological children are fairly protected.
If you would like advice on your blended family and to put specific measures in place, reach out to Simmons Legal.
What Is a Testamentary Trust and Do You Need One in Victoria?
A Testamentary Trust is a trust created within a Will which comes into effect after the death of the Will maker, not at the time their Will is signed.
It can be a powerful estate planning tool when used appropriately.
Reach out to Simmons Legal for advice on whether or not a testamentary trust is right for you.