22/05/2026
Since the recent on 2026–27 Budget Announcement on 12 May 2026 we have received enquiries about Testamentary Trust Wills (TTs) and the impact of the 2026–27 Budget Announcement.
You may be wondering if TTs are still valuable? Short answer: Yes absolutely, testamentary trusts are as powerful as ever. Tax planning is just one of many benefits.
There are many benefits of using a TT over a basic will, and only one of those benefits is tax planning.
TTs have the following benefits over a simple Will:
🌱Protecting assets if a child goes through a separation as an inheritance held in a TT is excluded from a beneficiary’s family law property settlement as the starting point.
🌱Protecting an inheritance from creditors if a beneficiary works in a high-risk profession or runs a business.
🌱Protecting vulnerable beneficiaries who may need financial oversight and guidance.
🌱Protecting against young adults making poor financial decisions with a large lump-sum inheritance.
🌱Choice between which beneficiaries receive income and in what proportions providing ongoing flexibility for tax planning.
It is important to remember:
🍃For beneficiaries already earning over $45,000 from other sources, the tax treatment under the proposed new rules is effectively unchanged.
🍃TTs we currently draft are optional, meaning your loved ones can take advice at the time of your death and decide whether to activate them based on the law and circumstances after you have died.
🍃The proposed tax changes are not yet law and don’t take effect until July 2028 at the earliest and similar proposals have been abandoned before.
🍃The TT needs to be in your will before you die. It’s too late to set up one after you have died. Now is right time to act to have a TT Will.
If you have questions about how a TT may be beneficial for your family. Reach out to us to schedule a consultation [email protected] ☎️
The above is for information and interest only. It does not constitute and must not be relied on as legal advice. You must seek specific legal advice tailored to your circumstances.
