When planning your estate, most people think of a standard Will—a document that sets out who receives your assets after you pass away. While this is a vital first step, it may not always provide the best protection or flexibility for your loved ones. A Will with a Testamentary Trust goes a step further, offering enhanced asset protection, tax benefits, and peace of mind.

At Trustify, we help families create estate plans that safeguard wealth for the next generation. Here’s why a Testamentary Trust Will can be a smarter choice.

The Harsh Reality: Many Australians Don’t Have a Will

Did you know that nearly half of Australian adults don’t have a valid Will? Studies consistently show that between 40–50% of people put off estate planning altogether. Life is unpredictable—you never know what’s around the corner. Without a Will, your assets are distributed according to government rules, not your wishes, and the process can take time, cost money, and cause disputes.

Even worse, if you do have a Will but it’s a simple one without safeguards, your loved ones could end up fighting over what you’ve built. A carefully designed Testamentary Trust Will helps minimise this risk by providing clarity, structure, and long-term protection.

What is a Testamentary Trust?

A Testamentary Trust is a trust that is created within your Will and comes into effect after your death. Instead of your beneficiaries receiving assets outright, they receive them via the trust. The trustee—who you nominate—manages those assets according to your instructions, for the benefit of your chosen beneficiaries.

Advantages Over a Standard Will

1. Asset Protection

If your beneficiary is facing bankruptcy, divorce, or other financial risks, assets received directly under a standard Will may be exposed to creditors or claims. A Testamentary Trust places a protective barrier around those assets, shielding them from external threats while still making them available for your beneficiary’s use.

2. Tax Benefits

One of the most powerful features of a Testamentary Trust is its tax flexibility. Income earned by assets in the trust can be distributed among multiple beneficiaries, including minors, who are taxed at adult rates rather than punitive child penalty rates. This can lead to significant tax savings and allow wealth to grow faster within the family.

3. Control and Flexibility

Unlike a standard Will, which simply transfers ownership, a Testamentary Trust lets you set rules. You can control how and when assets are accessed—for example, delaying access until your children reach a certain age or ensuring funds are used for education, housing, or health needs.

4. Blended Family Benefits

In blended families, estate planning can be complicated. A Testamentary Trust helps you look after your spouse while ensuring your children from a previous relationship also benefit. It provides a clear, enforceable structure that minimises conflict.

5. Long-Term Family Wealth Preservation

Rather than assets being spent or lost quickly, a Testamentary Trust ensures your wealth is managed prudently for future generations. It helps create a legacy that extends beyond your lifetime.

When is a Standard Will Still Sufficient?

For some people with modest estates or very simple family structures, a standard Will may be all that is required. However, if you have children, own significant assets, run a business, or want greater control over how your legacy is managed, a Testamentary Trust Will is usually the better option.

Final Thoughts

A Will is about more than just dividing assets—it’s about protecting your family’s future. While a standard Will provides the basics, a Testamentary Trust Will offers protection, tax advantages, and flexibility that a standard Will simply can’t match.

With so many Australians leaving their families unprotected by not having a Will—or having one that’s too basic—the time to act is now. Life is unpredictable, and the last thing you want is for your loved ones to fight over what you’ve built.

At Trustify, we specialise in helping Australians create estate plans that work smarter, not harder. If you’d like to learn more about whether a Testamentary Trust Will is right for you, get in touch today.