How does a testamentary trust for a young child work?
  • Home
  • Questions
  • How does a testamentary trust for a young child work?

How does a testamentary trust for a young child work?

1 answer

Answer to the question

0
0
7

27.06.2026

I want to leave my estate to my two young children in my will, but I am concerned about them receiving a large amount of money at eighteen. Can I set up something that manages the inheritance until they are older?

Site Administration 28.06.2026
reply date: 28.06.2026

Yes, this is commonly done through a testamentary trust within your will. Instead of leaving assets directly and outright, your will can direct that your assets be held on trust for your children, with the trustees managing the funds for their benefit, for example, paying for education and living costs, until they reach an age you specify, such as 21 or 25, or in stages. Under the Trusts Act 2019, trustees have duties to act honestly, in good faith and for the benefit of the beneficiaries, and to keep proper records. You should choose reliable, capable trustees and consider appointing more than one, and clearly set out the powers and any guidance for the trustees in the will. Discuss the structure with a lawyer to make sure it reflects your wishes and provides adequate flexibility for changing circumstances.

Похожие вопросы

Can I challenge a will that leaves me out?

1 answer
05.07.2026
My mother passed away and left almost everything to my sibling, giving me only a token amount. I helped care for her for years and feel this is unfair. Can I challenge the will, and on what basis? I am not sure where to start or who I should be contacting about this.
0
0
9

My parents put their house in a family trust, what happens to it?

1 answer
01.09.2026
My parents set up a family trust years ago and transferred the family home into it. Now that they have both passed away, I am unsure whether the house forms part of their estate or belongs to someone else. How does a trust affect inheritance?
0
0
7

What are the legal duties of an executor?

1 answer
14.09.2026
I have agreed to be the executor for a friend's estate. I want to do a good job, but I am worried about getting something wrong and being personally liable. What exactly is expected of me? Nobody has given me a straight answer and I want to understand where I actually stand.
0
0
8

How do I apply for probate?

1 answer
19.07.2026
I have been named executor in my aunt's will and I am told I need to get probate before I can deal with her bank accounts and property. I have never done this before. What is probate and how do I apply?
0
0
9

Do I need to pay tax on an inheritance in New Zealand?

1 answer
21.08.2026
I have just inherited a sum of money and some shares from a relative's estate. Someone told me that inheritances are taxed heavily in some countries. Do I have to pay any tax on what I receive in New Zealand?
0
0
21

Can a will be contested for lack of mental capacity?

1 answer
22.07.2026
My father made a new will only months before he passed, at a time when his memory was failing badly and he was heavily medicated. The new will strongly favours one sibling. Can this be challenged? I would appreciate some clarity on what the law actually requires here.
0
0
9
Show all