Testamentary Trusts, Tax Reform and the Human Side of Estate Planning
By Lisa Hughes|Principal Solicitor, Virago Law
I am pleased to share my recent article published in The Legal Brief, exploring the role of testamentary trusts in estate planning and why tax considerations should never overshadow the bigger picture.
The recent debate surrounding proposed changes to the taxation of discretionary trusts has brought testamentary trusts into the spotlight, prompting many families to question whether these structures remain worthwhile.
While the Federal Government has confirmed an exemption for testamentary trusts established for genuine testamentary purposes, the discussion raises a much more important question.
What are we actually trying to protect, and for whom?
In my article, I explore why effective estate planning requires more than simply preparing a Will or pursuing tax advantages.
It requires understanding family relationships, asset ownership, financial circumstances and the potential challenges beneficiaries may face in the future.
Testamentary trusts can be valuable estate planning tools, but they are not appropriate for everyone. Their effectiveness depends on the individual circumstances of each family and the objectives they are intended to achieve.
Ultimately, good estate planning is about making informed decisions that protect the people who matter most.
Read my article, “The Tax Tail Shouldn’t Wag the Estate Planning Dog”, originally published in The Legal Brief.