Relationship Breakdown & Divorce
A testamentary trust has special powers and can only be created by a Will on the death of the Will owner. Testamentary trusts are simple and inexpensive to operate, and act as the beneficiary’s ‘personal bank’ that they control.
One of the special powers that a Will Wizard® testamentary trust provides is to assist with shielding a beneficiary’s important inherited assets from any disputed asset pool during a relationship breakdown or a divorce proceeding in the Family Court.
Given that the average relationship in Australia only lasts approximately 10 years, it is statistically probable that your spouse, partner or at least one of your children will go through a divorce or the breakdown of a defacto or dependent relationship at some point after you pass away.
This fact alone makes relying on Will Wizard’s testamentary trust protections a prudent step for anyone wishing to provide loved ones with the best opportunities to protected their inherited wealth.
Will Wizard testamentary trust protections can last 80 years across generations.
Bankruptcy & Money Problems
One of the special powers afforded to assets inherited into a Will Wizard testamentary trust is that assets are substantially protected when the beneficiary suffers a bankruptcy, is sued, has a business fail or is subject to creditors.
Money problems can arise from any number of reasons, from bad luck to poor choices. However the hard earned wealth you have inherited yourself, or left to your spouse, partner or children doesn’t have to fall into the hands of creditors, the government or debt collectors.
As with family court proceedings, family inheritances when managed via a Will Wizard testamentary trust are shielded from being seized due to bankruptcy, a business failure or similar - another critically important and valuable protection that will help to keep your wealth in the hands of your family long term.
Will Wizard® allows family members to manage their inheritance in a testamentary trust. A testamentary trust has special powers and can only be created by a Will on the death of the Will owner. Testamentary trusts are easy and simple to operate, and act as the beneficiary’s ‘bank’ that they personally control.
Mental Health Problems
Testamentary trusts can help to protect inherited assets if a beneficiary develops a mental health issue and are no longer capable of managing their inheritance.
Nearly everyone will go through hard times at some point in their life where they are not in the right frame of mind to be making important financial decisions.
Will Wizard includes important crisis provisions that allow beneficiaries to be temporarily distanced from their inheritance when it could be under heightened risk due to their state of mind or due to third party claims.
A beneficiary will stay have access to funds for important health, education and welfare needs, and will resume full control over their inheritance once the risk has passed.
Given the prevalence of short term and long term mental health issues facing modern society, including crisis provisions in your Wills might mean the difference between an at risk beneficiary losing or not losing an inheritance when they are at their most vulnerable.
Drug & Other Addictions
Inherited assets in a Will Wizard® testamentary trust could potentially be shielded if a beneficiary develops a drug or gambling addiction.
The stresses of modern life sadly makes drug and gambling addiction are all too common with many people going through tough times where they could be susceptible to developing an addiction.
During these times addicts are not in the right frame of mind to be making important financial decisions, and at Will Wizard we don’t believe they should be allowed to.
All Wills from Will Wizard include important crisis provisions which allow beneficiaries to be temporarily removed as controller of their testamentary trust by the executor if and when it could be under heightened risk due to their problems with addiction.
The beneficiary still has access to funds for important health, education and general welfare expenses, but does not have full autonomous control again until the issues with their addiction have been resolved.
Will Wizard® establishes a backup estate distribution plan to ensure that reserve beneficiaries are nominated so that the State does not end up receiving your financial estate if the worst case scenario happens and all of your primary or first choice beneficiaries, and their direct descendants, die before they can inherit your estate.
Reserve beneficiaries may be siblings, parents, cousins, friends etc.
Please note: If you have certain complexities such as family members with a disability, complex business interests or are part of a blended family we suggest you seek the advice of a experienced estate planning solicitor. If you are unsure about any of the information provided here please seek professional advice or contact us.