TDT (Testamentary Discretionary Trust)
Wills: When relevant and advice should be taken
Couples with dependent children, where assets and/or life insurance (within or outside Superannuation) are sufficient; for example:
The advantages of TDT Wills principally include:
An individual, personally controlled TDT is often the most advantageous and effective structure for a beneficiary holding substantial inherited and income generating assets. Generally, wills should be flexible to allow choice as to the extent of funds that would fall into a TDT, so that any other suitable financial strategies can be looked at to suit the needs of each primary beneficiary at the time of their inheritance.
Where appropriate, TDT’s can also act as a special residence trust in the Will of one spouse, which would enable the other spouse to control the residence through the TDT, while retaining asset protection advantages and the personal residence exemption from capital gains tax.
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