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Successions and wills

The testamentary trust

The idea that money accumulated throughout a lifetime will be quickly squandered by an heir is not a pleasant perspective for anyone. And it is natural to be concerned about what will become of a disabled child once we leave this world, even if a substantial sum of money from our savings or life insurance has been set aside for him or her.

Sometimes, it’s not just about preparing a will and planning in whose hands the wealth we have carefully accumulated will end up. There is, however, a tool for controlling the use, management and eventual distribution of assets: the testamentary trust.

The testamentary trust makes it possible to give instructions during one’s lifetime for the money bequeathed upon death to one or more persons. Using this type of instrument means that wealth is no longer given directly to heirs, but rather to a trust. For example, the trust can pay an income to the surviving spouse until his or her death, at which time the residual capital can be shared among the children. The trust can also be used to pay the children’s school fees until a predetermined age.

The notary is an expert when it comes to protecting wealth. The testamentary trust is a way of extending the protection of a person’s wealth to the benefit of his or her loved ones. Notaries are able to advise their clients about the suitability of such a trust and, if necessary, they can help them set it up and select a trustee. This part of the work includes delineating the trustee’s powers and duties.

The notary’s knowledge also ensures that he or she will be in a position to suggest advantageous tax and estate planning measures allowed under a testamentary trust.