{"id":211126,"date":"2021-10-18T13:45:41","date_gmt":"2021-10-18T00:45:41","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=211126"},"modified":"2021-10-20T11:48:55","modified_gmt":"2021-10-19T22:48:55","slug":"testamentary-trust-nz","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/testamentary-trust-nz\/","title":{"rendered":"Advantages of a Testamentary Trust in NZ"},"content":{"rendered":"

It is important to make decisions about your estate before you pass away to prevent disputes over your assets. Creating a will allows you to distribute your assets among family members or friends in the way that you want. For instance, you can nominate to give assets to particular recipients in your will outright. Alternatively, you can also place them \u2018in trust\u2019 so that trustees control them. One type of trust that might arise out of a will is a testamentary trust. This article will explain what testamentary trust is and the advantages of using one.<\/span><\/p>\n

What Is a Trust?<\/span><\/h2>\n

A trust is a type of legal entity that arises when a person holds assets on behalf of someone else. The person holding assets is known as the \u2018trustee\u2019<\/a>. Additionally, the person benefiting from the trust is known as the \u2018beneficiary\u2019. Trusts are an important legal structure as they permit a trustee to hold assets for the benefit of somebody else. Additionally, trusts are most commonly used in organisations that have a charitable purpose or for succession planning.\u00a0<\/span><\/p>\n

What Is a Testamentary Trust?<\/span><\/h2>\n

A testamentary trust is a popular type of trust used in wills. A testamentary trust is where the terms of the will state that trustees must hold some assets in trust for beneficiaries<\/a>. <\/span><\/p>\n

\n

For example, this may occur where there are underage children nominated as beneficiaries. <\/span><\/p>\n<\/div>\n

For a testamentary trust to arise, the person making the will must expressly state this at the time that they sign the will.<\/span><\/p>\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

\n
\n Need legal advice?\n
\n \n Call 0800 005 570<\/a> for urgent assistance.\n
\n Otherwise, complete this form, and we will contact you within one business day.\n <\/span>\n <\/div>\n\n \n\n
\n