Plan ahead with care and clarity
Testamentary trust wills for asset protection and peace of mind
A testamentary trust will lets you protect your assets, support your family, and decide how your estate is managed after you're gone. Carew Counsel provides clear legal advice and tailored solutions that reflect your wishes.
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What is a testamentary trust will?
A testamentary trust will is a legal document that sets up a trust or trusts through your will, allowing selected assets to be managed and distributed by a trustee after your death. Unlike a standard will, it does not transfer assets all at once to beneficiaries. It gives your chosen trustee the power to distribute them over time, based on what is best for each beneficiary.
This structure offers key advantages for families wanting to preserve wealth, protect vulnerable beneficiaries, or minimise tax. A discretionary trust under a will allows for flexible, staged distribution of assets based on the best interests of each beneficiary. At Carew Counsel, our estate planning lawyers work with you to establish a plan that reflects your values, provides long-term asset protection, and supports the people you care about most.
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Our testamentary trust services
Our legal team works closely with you to draft a clear, strategic will that reflects your priorities and protects your loved ones. We tailor every plan to your personal, family, and financial situation.
Advice on whether a trust is right for you
We start by understanding your estate and family dynamics. If you have young children, dependents, or beneficiaries who need financial guidance, a testamentary trust may offer important protections.
Drafting a testamentary trust will
We draft your will to establish the trust, name your trustee, and define who will benefit. This process includes planning for key tax implications, including capital gains tax concessions and reduced tax rates for minor beneficiaries.
Structuring the trust for flexibility
We ensure your trust allows for discretionary control, so the trustee can manage and distribute assets based on the needs of each beneficiary. This can minimise the risk of disputes and preserve the value of your estate.
Ongoing support and legal updates
Testamentary trust wills may need to be updated through a codicil to a will if your circumstances change. We offer continuing legal counsel to ensure your plan evolves with your life.
When to consider a testamentary trust in your Will
A testamentary trust form of will may be right for you if you want to control how your estate is used after your death. This is especially helpful when beneficiaries are young, financially inexperienced, or facing personal challenges.
You should also consider this option if your estate is complex, or if you want to minimise tax and protect assets from creditors or relationship breakdowns. Our wills and estate lawyers will explain the legal issues clearly and guide you through each step.
The benefits of working with a testamentary trust lawyer
Working with an experienced lawyer ensures that the terms of your testamentary trust will are drafted correctly and work in the best interests of your beneficiaries. We will:
- Help you establish the testamentary trust/s within your will
- Guide you through your legal obligations and trustee responsibilities
- Structure the testamentary trust/s to reduce tax where possible
- Explain how to preserve your estate’s value for the future
- Offer personalised legal services that align with your goals
- Provide long-term support for updating or revising your plan
Our solution-focused process
What our clients say
Here’s what our clients say about working with our estate planning lawyers in Melbourne. We’re proud to help families plan with confidence.
"10 Stars! Very happy & relieved that I chose Carew Counsel for a family member in an extremely concerning & complicated Family Court/child protection matter. Highly professional, ethical, respectful, knowledgeable, hardworking, strategic, collaborative, communicative, caring, compassionate & child & family welfare focused. Thank you from the bottom of our hearts for helping us protect our little child."
"10 Stars! Very happy & relieved that I chose Alex Carew & Carew Counsel for a family member in an extremely concerning & complicated Family Court/child protection matter. Highly professional, ethical, respectful, knowledeable, hard working, strategic, collaborative, communicative, caring, compassionate & child & family welfare focused. Thank you from the bottom of our hearts for helping us protect our little child."
"Carew Counsel team was recommended to me by one of my friends and my case was handled by Keleigh and her team very efficiently, with quick replies, flexibility to change requests and professionally. I am highly recommending them to their future clients and can only thank them with this review for their great work."
"I would like to thank and acknowledge all the team at Carew Counsel Solicitors for representing me in my recent financial settlement matter. I highly recommend that you engage Carew Counsel Solicitors to represent you in your family law matter."
"Across my two year fight to save my son from serious harm, Alex Carew was there every step of the way. His wisdom, professionalism, empathy, meticulous notes, and steadfast negotiation yielded a result which will protect my son now, and for years to come. I can't recommend him and his firm highly enough."
"To the Carew Counsel team. I would like to thank you all for your interest, professionalism, and humanity. You enabled a very stressful process to be handled with diligence and care. I am very grateful to you all for assisting me with this. Most of all, a big thank you to you Jenni Mooney, for your competence, professionalism and humour. Because of you, the process was as least stressful as feasibly possible. My heart goes out to you. Carew Counsel are lucky to have you. All the best to you all."
"To the Carew Counsel team. I would like to thank you all for your interest, professionalism, and humanity. You enabled a very stressful process to be handled with diligence and care. I am very grateful to you all for assisting me with this."
"In what was a difficult time to go through, I'm thankful that I had the team at Carew in my corner. I received sound advice all the way through the process and felt proud of the dignified way that my case was being responded to. I would certainly recommend Madison and the team at Carew for their professionalism, experience, integrity and dedicated service."
"I highly recommend Carew Counsel Solicitors for anyone seeking a dedicated and knowledgeable solicitor for family law matters. Madison Ogilvie excelled in her communication, ensuring I was kept informed every step of the way. Although it got stressful, Madison's professionalism was top-notch."
Why Melbourne families choose Carew Counsel
Personalised support for every family
Your estate plan is built around your goals and family. We take the time to listen and offer advice that reflects your values.
Trusted experience you can rely on
Our team brings 40+ years of experience in wills and estate law, including trust structures and complex distributions.
Clear, practical guidance without jargon
We explain every step in clear terms. You will always know your options and how to move forward.
Transparent pricing with no surprises
We provide honest, upfront cost estimates so you can plan with clarity and confidence.
Meet the experts who’ll establish your testamentary trust will
Frequently asked questions about testamentary trust wills
If you are exploring whether a testamentary trust is right for your family, the answers below will help clarify key benefits, risks, and responsibilities.
When a testamentary trust is established, the specified assets are transferred into the trust after the death of the person who made the will. These become trust assets, managed by the trustee.
The trust deed outlines who can benefit from the trust, how assets or income may be distributed, and what powers the trustee has. This arrangement provides asset protection benefits, especially for minor beneficiaries or family members in complex situations.
Yes. Testamentary trusts can provide significant tax advantages, particularly for income distributed to children under 18, who may be taxed at adult marginal tax rates.
This can reduce overall taxable income for the family. The trust may also help manage capital gains tax (CGT) and allow income and capital to be split across beneficiaries based on what is most tax-effective each year.
Yes, testamentary trusts must lodge annual tax returns. The trustee is responsible for ensuring all income, expenses, and distributions are accurately reported to the ATO.
You may also need support with trust accounting, particularly where multiple beneficiaries or asset types are involved. Our team can connect you with accountants who regularly assist with trust tax returns and estate reporting.
Most types of asset classes owned by a will-maker can be transferred into a testamentary trust upon the death of the will-maker. This includes property, investments, cash, and even shares in a private company.It is not always necessary to ‘cash out’ assets owned by a will-maker after their death in order to place the proceeds into the testamentary trust.
Assets held within the trust remain protected from direct claims and can be distributed according to the terms of the trust, which are set out in the will. The trustee may choose to preserve certain assets for long-term benefit or sell them and distribute proceeds, depending on the needs of each beneficiary.
Yes. A testamentary trust gives greater control over how and when a beneficiary’s inheritance is accessed. This is especially useful if a beneficiary is financially irresponsible or at risk of external claims.
Some clients set up a testamentary trust within their will to ensure that distributions are made gradually or only for specific purposes, such as education for children and grandchildren, or housing and healthcare for a spouse or dependent. This structure can be tailored to your family’s specific needs. It gives you confidence that your estate will be properly managed after your death, not just handed over to beneficiaries where it may be at risk.
A standard will typically direct all of the person’s assets to be distributed outright. A testamentary trust will, by contrast, creates a trust or trusts that are established upon the death of the will-maker and allows assets to be held, managed, and distributed over time, rather than inherited immediately.
This trustee company structure gives the will-maker more flexibility and allows them to design an inheritance strategy that suits each beneficiary's needs — including tax planning, protection from creditors, or staged access to funds.
A testamentary trust under a will can effectively be revoked if the will creating it is revoked or replaced before death, as the testamentary trust created under a will only comes into existence on the will-maker’s passing.
While a testamentary trust’s terms guide the named trustee in the operation of the trust, the trustee may have discretion over how distributions are made within the bounds of the trust terms. This makes it critical to draft the terms of a testamentary trust with legal guidance from expert will lawyers in Melbourne who understand your full intentions.
In Victoria, setting up a testamentary trust under a will does not generally change the steps required for probate, but it can add complexity to the administration that follows.
You may wish to consult probate lawyers in Melbourne to help navigate the estate administration process and ensure the testamentary trust or trusts are correctly activated. For information on trust-related tax benefits and other matters, the ATO offers detailed guidance.