Wills & Estate Planning · Testamentary Trust

Protect their inheritance until they're ready for it.

A testamentary trust is created in your will and comes to life if you die, holding your children's or dependants' inheritance under trustees you choose, instead of being paid out as a lump sum or locked in the state Guardian's Fund. Read the short guide below to understand how it works and why families use one, then complete the questionnaire and we'll draft it, along with a private letter of wishes to guide your trustees.

Start the Questionnaire

First, the basics

What a testamentary trust actually is

A testamentary trust is a trust written into your will. It does nothing while you're alive, it only comes into existence if you die. At that point, the trustees you named take charge of the inheritance you left for your children or dependants, and look after it for them until they reach the age you chose.

Think of it as a set of instructions for who holds the money, what it may be spent on, and when it gets handed over, instead of a lump sum landing in a bank account on someone's 18th birthday.

You write it into your will

The trust clauses form part of your will. Nothing needs to be registered now, there's nothing to run, and you can change it whenever you update your will.

It comes to life when you pass away

Your executor reports the estate to the Master of the High Court, and your trustees are formally appointed. The inheritance you set aside goes into the trust rather than straight to the beneficiaries.

Trustees look after it, until it's time

They pay for schooling, medical care and living costs along the way, then hand the inheritance over at the age you chose: 21, 25, 30, or in stages.

Why people use one

What happens to a child's inheritance without it

Most people assume that if they leave everything to their children, their children simply get it. For a child under 18, that's not how it works.

Without a testamentary trust

A minor can't hold an inheritance directly. Cash left to a child under 18 is typically paid into the Guardian's Fund, administered by the Master of the High Court, not to the person raising them.
The guardian must apply to the Fund each time money is needed for the child's upkeep or education.
Assets that can't go into the Fund, a house, shares in a business, may have to be sold and turned into cash.
At 18, whatever remains is paid out in one lump sum, whether or not the young adult is ready for it.
No one you chose is in control of any of it.

With a testamentary trust

Trustees you selected, usually family plus one independent person, manage the inheritance from day one.
They can pay for school fees, university, medical costs and day-to-day needs as they arise, without applying to anyone.
The family home, a business shareholding or a farm can be kept in the trust rather than sold off.
The inheritance is handed over at the age you set, 21, 25, 30, or in stages, so a large sum isn't received all at once.
Because the trustees hold the assets, the inheritance is better shielded from a beneficiary's creditors, a divorce, or one bad decision at 18.
Your private letter of wishes tells the trustees how you'd want decisions made.

Who it's for

People who typically set one up

Parents of children under 18

By far the most common reason. If both parents pass away, the trust, not the Guardian's Fund, holds the children's inheritance.

Anyone supporting a dependant with a disability

The trust can provide for a child or family member who may never be able to manage money themselves, for as long as they live.

Parents who'd rather not hand over a lump sum at 18

Even with adult children, you may want the inheritance released at 25 or 30, or staggered, with support for education in the meantime.

Someone protecting a vulnerable beneficiary

A child in a shaky marriage, facing debt, or struggling with addiction, the trust keeps the inheritance out of reach of the wrong people.

Business owners and farmers

Keeping a shareholding or a farm together in the trust, rather than forcing a sale to split cash between heirs.

Blended families

Providing for a spouse during their lifetime while making sure the capital ultimately goes to your own children.

Good to know: the tax treatment is often kinder than people expect

Ordinary trusts pay income tax at a flat 45%. But a testamentary trust set up for minor children, or for a beneficiary with a disability, will usually qualify as a "special trust", taxed on the same sliding scale as an individual, starting at 18%, with a friendlier capital gains treatment too. That status doesn't last forever for children's trusts (it falls away once the youngest beneficiary turns 18), so it pays to plan the vesting age with this in mind. We'll flag it; your tax practitioner confirms it.

Common questions

Things people ask before they start

Is this the same as a family trust?

No. A family (inter vivos) trust is registered and operates while you're alive, you move assets into it now. A testamentary trust exists only in your will and is created by your death. Many clients use both: an inter vivos trust for growing assets during their lifetime, and a testamentary trust in the will as a safety net for minor children.

Does it cost anything to keep going while I'm alive?

Nothing. It's simply clauses in your will. There's no registration, no annual return and no bank account until the trust actually comes into existence on your death.

What's the difference between a guardian and a trustee?

The guardian is the person who raises your children, where they live, which school they go to. The trustees manage the money. They can be the same people, but they don't have to be, and it's often wise to split the roles so no one person controls both the child and the inheritance.

Can my spouse or a family member be a trustee?

Yes, and usually should be. Best practice, which we follow, is at least two trustees including one independent person who isn't a beneficiary, such as an accountant, attorney or trusted family friend. The Master may in any event require an independent trustee before issuing Letters of Authority.

What is a letter of wishes?

A private letter from you to your trustees explaining how you'd like them to make decisions, priorities, values, particular concerns about a beneficiary. It isn't legally binding and isn't part of the public will, which is exactly why it can be candid. We draft it with you alongside the will.

If my children are already adults, do I still need one?

Often not, but some parents still want an inheritance released in stages, or to protect a child going through a divorce or financial trouble. If that isn't a concern, a straightforward will may be all you need. Tell us your situation and we'll say so honestly.

Ready when you are

Tell us about your family, and we'll draft it

Eight short sections. It takes about fifteen minutes, and "not sure" is a perfectly good answer.

Start the Questionnaire

A testamentary trust lives inside your will. It only takes effect if you pass away, and then your chosen trustees manage the inheritance for your beneficiaries until they reach the age you set. Answer as fully as you can, "not sure" is a fine answer, and we'll guide you on anything unclear.

Your information stays on your device until you send it. Incomplete answers are fine; send what you have and follow up later.

About you (the person making the will)

Your full legal name

Your ID number

Are you married? If so, marital regime

in community / out of community / with accrual

Naming the trust

What should the trust be called?

e.g. "The Smith Children's Trust", usually your family name

Who is the trust for?

The beneficiaries, names, relationship to you, and dates of birth

e.g. my children Anna (2015) and Tom (2018)

Are any beneficiaries under 18, or unable to manage money themselves (e.g. a disability)?

This affects the trust's tax treatment and structure

Who will manage the trust?

Trustees control and protect the inheritance. You need at least two, and best practice (which we follow) includes one independent trustee who isn't a beneficiary, it keeps the trust strong and protects it from challenge.

Trustee 1, full name & relationship to you

Trustee 2, full name & relationship to you

Independent trustee, name, or "please advise / provide one"

Someone not related to you and not a beneficiary

What goes into the trust?

What should the trust hold when you pass away?

My whole residual estate (everything left after specific gifts)Only my children's / minors' inheritanceSpecific assets only (I'll describe them)Not sure, advise me

If specific assets, or anything to add, describe them

e.g. my home, my share of the business, a life policy payout

At what age should beneficiaries receive their inheritance?

Until this age, the trustees manage and protect the inheritance, paying for education, health and living needs. You can also stagger it.

Your letter of wishes (private guidance to your trustees)

This private letter guides your trustees without tying their hands. It's not part of the will and isn't made public, it's your voice, helping them make good decisions.

In one or two sentences, your overall wish for how the trust looks after your beneficiaries

e.g. educate and support my children until they're mature enough to handle an inheritance

What should trustees prioritise? Any beneficiary with special needs or circumstances?

education, healthcare, a child who needs extra protection, etc.

If you have minor children, who should be their guardian (the person who raises them)?

This is separate from the trustees who manage the money

Any specific wishes? (keep the family home, protect a beneficiary from a lump sum, values to pass on)

Your contact details

Email address

Phone / WhatsApp

Do you already have a will we should update, or is this a new will?

Review & send

Check the summary and send it through. We'll come back within one business day with your fixed quote and next steps.

You haven't named a guardian for minor children. The guardian (who raises your children) is a separate choice from the trustees (who manage the money), both belong in your will. We'll raise this with you.

A testamentary trust is part of your will, so we'll prepare it within a properly executed will, together with your private letter of wishes.

Your full legal name: -
Your ID number: -
Are you married? If so, marital regime: -
What should the trust be called?: -
The beneficiaries, names, relationship to you, and dates of birth: -
Are any beneficiaries under 18, or unable to manage money themselves (e.g. a disability)?: -
Trustee 1, full name & relationship to you: -
Trustee 2, full name & relationship to you: -
Independent trustee, name, or "please advise / provide one": -
What should the trust hold when you pass away?: -
If specific assets, or anything to add, describe them: -
At what age should beneficiaries receive their inheritance?: -
In one or two sentences, your overall wish for how the trust looks after your beneficiaries: -
What should trustees prioritise? Any beneficiary with special needs or circumstances?: -
If you have minor children, who should be their guardian (the person who raises them)?: -
Any specific wishes? (keep the family home, protect a beneficiary from a lump sum, values to pass on): -
Email address: -
Phone / WhatsApp: -
Do you already have a will we should update, or is this a new will?: -

Please don't include other people's ID numbers without their consent, we'll collect what's needed securely at the drafting stage.