What if a family member dies without a Testamentary Trust Will?
All is not lost. If you die with a Non Testamentary Trust Will or even without a Will you can within 3 years of that death set up a Post Testamentary Trust (“PTT”). While this is not as good as a testamentary trust a PTT has many benefits provided you have children under 18 years of age. If your children are over 18 years of age then the PTT won’t help you save tax. Sorry about that. (On the other hand a Testamentary Trust works with or without children.) How do I set up a Post Testamentary Trust Will? The Taxation Assessment Act 1997 states that a person receiving property (real estate, cash and the like) from a deceased person has 3 years after the death of the deceased to transfer that property to a PTT. A Lawyer who works in the area of Estate Planning together with your Adviser can set up such a trust. The income generated in the trust from the deceased estate can be used for income splitting for your children under 18 years of age. What advantages are there for children under 18?
