Testamentary Trust Will Template
A testamentary trust will establishes a discretionary trust through your will that comes into existence upon your death. Beneficiaries — particularly minor children — receive distributions at adult marginal tax rates rather than the penalty rate that applies to children's unearned income. Our free Australian template covers executor, trustee, guardian, vesting, and broad investment powers.
| TESTATOR | Margaret A. Morrison |
| DATE OF BIRTH | 15 April 1965 |
| ADDRESS | 18 Jacaranda Drive, Turramurra NSW 2074 |
| DATE OF WILL | 28 June 2026 |
| GOVERNING LAW | New South Wales |
| EXECUTOR | William J. Morrison |
| ALTERNATE EXECUTOR | Sarah K. Morrison |
| TRUST NAME | Morrison Family Testamentary Trust |
| TRUSTEE | William J. Morrison |
| VESTING AGE | 25 years |
I, Margaret A. Morrison of 18 Jacaranda Drive, Turramurra NSW 2074, declare this to be my Last Will and Testament, made this 28 June 2026.
1.1 Revocation: I revoke all former Wills, codicils, and testamentary dispositions previously made by me.
1.2 Capacity: I declare that I am of sound mind, memory, and understanding, and that I make this Will freely and voluntarily without any undue influence or duress.
1.3 Governing Law: This Will is made in New South Wales, Australia, and is to be construed and administered in accordance with the succession legislation and laws of New South Wales.
I appoint William J. Morrison of 18 Jacaranda Drive, Turramurra NSW 2074 to be the Executor and Trustee of this my Will ("Executor").
If William J. Morrison is unable or unwilling to act as Executor, I appoint Sarah K. Morrison as alternate Executor with the same powers and authority.
My Executor has all the powers and authorities conferred by applicable law, including power to: (a) collect and manage all assets of my estate; (b) pay all my debts, funeral expenses, and testamentary expenses; (c) deal with and realise estate assets; and (d) administer the Morrison Family Testamentary Trust in accordance with this Will.
Before distributing the residue of my estate, I direct my Executor to give and transfer the following specific bequests and legacies:
I give my gold watch to my nephew James R. Morrison. I give the sum of $10,000 to the Royal Sydney Golf Club Foundation.
If any specific legatee does not survive me by 30 days, the bequest lapses and falls into the residuary estate, unless otherwise indicated above.
Subject to the payment of my debts, funeral and testamentary expenses, and any specific bequests, I give, bequeath, and devise the whole of the rest and residue of my estate (the "Residual Estate") to my Executor upon trust, to hold as trustee of the Morrison Family Testamentary Trust (the "Trust") on the terms set out in this Will.
The Residual Estate includes all property (real and personal, wherever situated) of which I may be possessed or entitled at the date of my death, and which has not been specifically bequeathed under this Will.
The Morrison Family Testamentary Trust is established on the following terms:
5.1 Trustee: The initial trustee of the Trust is William J. Morrison ("Trustee"). The Trustee may appoint a replacement or additional trustee in accordance with applicable law.
5.2 Beneficiaries: The primary beneficiaries of the Trust are:
- Thomas A. Morrison — Son, born 1 January 2005
- Sarah K. Morrison — Daughter, born 15 June 2008
5.3 Trustee Discretion — Income: The Trustee may, in its absolute discretion, pay or apply the whole or any part of the income of the Trust to or for the benefit of any one or more of the beneficiaries in such shares and proportions as the Trustee determines.
5.4 Trustee Discretion — Capital: The Trustee may, in its absolute discretion, pay, apply, or advance the whole or any part of the capital of the Trust fund to or for the benefit of any one or more of the beneficiaries.
5.5 Tax-Effective Distributions: The Trustee acknowledges that distributions from a testamentary trust to minor beneficiaries are assessed at the standard adult marginal tax rates under Australian income tax law, not at the penalty rate that applies to income of children from other trusts. The Trustee should seek professional tax advice regarding distributions.
6.1 Vesting: The Trust is to vest and the Trust fund is to be distributed to the beneficiaries when the youngest primary beneficiary attains the age of 25 years, or upon such earlier date as the Trustee determines.
6.2 Distribution on Vesting: On vesting, the Trustee is to distribute the Trust fund equally among the surviving primary beneficiaries (or such other proportions as the Trustee determines, in the event that the circumstances of the beneficiaries differ materially).
6.3 Fallback: If no primary beneficiary survives me by 30 days, the residual estate is to be divided equally among my surviving grandchildren, or failing grandchildren, to Cancer Council NSW.
6.4 Death of Beneficiary: If a primary beneficiary dies before the vesting date leaving issue who survive to the vesting date, the deceased beneficiary's share passes to that issue equally by representation. If a beneficiary dies without issue, the share falls back into the Trust fund for distribution among the surviving beneficiaries.
I appoint James W. Morrison of 4 River Road, Gordon NSW 2072 as Guardian of any minor child of mine who survives me and who is under 18 years of age at the date of my death ("Guardian").
If James W. Morrison is unable or unwilling to act as Guardian, I appoint Patricia L. Morrison as alternate Guardian.
The Guardian is to have full parental authority and responsibility for the day-to-day care, welfare, and development of my minor children. The Guardian is not required to give security, and the Trustee may pay to the Guardian from the Trust fund reasonable amounts for the maintenance, education, advancement, and general welfare of my minor children.
Funeral Wishes: I wish to be cremated. I do not require a formal funeral service. My ashes are to be scattered at Manly Beach, NSW.
Organ Donation: I authorise and request that any of my organs or tissues that are suitable be donated for the purposes of transplantation, therapy, or medical education. I ask that my medical team make all relevant assessments promptly after my death.
I acknowledge that my funeral and personal wishes are expressions of preference and are not legally binding on my Executor, but I ask that they be followed where practicable.
7.1 Broad Investment Powers: The Trustee has the broadest investment powers, including power to invest in any property or assets (real or personal, domestic or international) as if the Trustee were the absolute owner of the Trust fund. The Trustee is not restricted to investments authorised under the trustee legislation of New South Wales but must have regard to prudent investment principles.
7.2 General Trustee Powers: Without limiting the generality of the Trustee's powers, the Trustee may: (a) purchase, sell, exchange, mortgage, and manage property; (b) borrow money and give security; (c) carry on any business forming part of the estate; (d) compromise claims; (e) employ and pay agents, accountants, and legal advisers; and (f) do all other things necessary or expedient for the prudent administration of the Trust.
7.3 Trustee Remuneration: The Trustee (if a professional trustee company) is entitled to charge and be paid reasonable remuneration for services rendered in the administration of the Trust at such rates as are current from time to time. An individual Trustee who is also a beneficiary is not entitled to remuneration for acting as Trustee.
7.4 Exoneration: The Trustee is not personally liable for any loss to the Trust fund arising from the exercise (or non-exercise) of any power or discretion, unless caused by the Trustee's wilful misconduct or dishonesty.
The following special conditions apply to this Will and the testamentary trust established under it:
No beneficiary who has been convicted of a serious criminal offence against a family member shall be entitled to benefit from the Trust.
11.1 Survivorship: A beneficiary who does not survive me by 30 days is taken to have predeceased me for the purposes of this Will, unless otherwise specified.
11.2 Interpretation: Words importing the singular include the plural and vice versa. References to a person include their legal personal representative and successors.
11.3 Severance: If any provision of this Will is invalid or unenforceable, that provision is severed and the remainder of this Will continues in full force.
Signed, published and declared by the said Margaret A. Morrison as and for their Last Will and Testament, in the presence of us both being present at the same time, who at their request and in their presence and in the presence of each other have subscribed our names as witnesses.
What Is a Testamentary Trust Will?
A testamentary trust will is a will that includes provisions establishing a discretionary trust upon the testator's death. Rather than distributing the estate outright to beneficiaries, the will directs the executor to hold the residual estate on trust for a class of beneficiaries (typically the testator's children and grandchildren) and gives the trustee discretion to distribute income and capital among beneficiaries over time. The trust comes into existence at the date of death and is administered by the executor/trustee under the terms of the will.
The primary tax advantage of testamentary trusts under Australian income tax law is that income distributed to minor beneficiaries (children under 18) is assessed at adult marginal tax rates, not the penalty rate that applies to most other forms of children's unearned income. Under section 102AC of the Income Tax Assessment Act 1936 (Cth), income from testamentary trusts is specifically excluded from the penalty tax regime applicable to children under 18. This can produce significant tax savings for Australian families leaving substantial estates to minor children.
Australian testamentary trust wills are governed by the same state succession legislation as ordinary wills — the Succession Act 2006 (NSW), Wills Act 1997 (Vic), Succession Act 1981 (Qld), Wills Act 1970 (WA), and equivalents in other states and territories. The will must meet formal requirements for validity: in writing, signed by the testator, witnessed by two independent adults present at the same time. The testamentary trust provisions sit within the will document and become operative upon probate.
What's Covered in This Template
Our Australian testamentary trust will covers every element of a valid will with a full discretionary trust structure.
Testator Declaration and Revocation
Statement revoking all prior wills and codicils and declaring sound mind and capacity.
Executor Appointment
Primary and alternate executor with full administration powers.
Residual Estate to Trust
Direction to hold the residual estate on trust after payment of debts and specific bequests.
Testamentary Trust Terms
Establishment of the named trust with the executor as initial trustee and primary beneficiaries listed.
Trustee Income Discretion
Power to distribute income to beneficiaries in any proportions the trustee determines.
Trustee Capital Discretion
Power to advance or apply capital for the benefit of any beneficiary.
Distribution and Vesting
Vesting age (default 25), proportional distribution on vesting, and death-before-vesting provisions.
Appointment of Guardian
Expert: Guardian and alternate guardian for minor children with authority and powers.
Specific Bequests and Legacies
Expert: Cash gifts and heirlooms to named individuals or charities before the residual estate.
Funeral and Personal Directions
Expert: Burial or cremation preference, organ donation, and funeral guidance.
Broad Trustee Investment Powers
Expert: Power to invest in any asset as a prudent investor, beyond the statutory list.
Trustee Remuneration and Special Conditions
Expert: Entitlement to charge fees and any additional conditions on trust distributions.
How to Create a Testamentary Trust Will
Follow these steps to prepare a valid Australian testamentary trust will.
- 1
Enter Your Personal Details
Provide your full name, address, date of birth, and the Australian state or territory whose succession laws will govern the will.
- 2
Appoint Executor and Trustee
Name your executor (who administers the estate) and initial trustee (who manages the testamentary trust). These are often the same person — typically a spouse or adult child.
- 3
Name Your Beneficiaries
List the primary beneficiaries of the testamentary trust (usually your children) with their dates of birth. Set the vesting age at which final distribution will occur.
- 4
Add Expert Provisions
Unlock the Expert section to appoint a guardian for minor children, specify bequests to individuals or charities, record funeral wishes, and expand the trustee's investment powers.
- 5
Sign Before Two Witnesses
Sign the will in the presence of two independent adults who are not beneficiaries, and who witness and sign at the same time.
Legal Considerations
Testamentary trust wills require compliance with Australian state succession law and offer significant tax planning opportunities.
This template is for informational purposes only and does not constitute legal or financial advice. Testamentary trust wills involve complex Australian succession law, taxation, and trust administration. Seek advice from a qualified Australian succession lawyer and tax adviser.
Reviewed for Australian law
Formal Requirements for a Valid Will
A testamentary trust will must meet the same formal requirements as an ordinary will under Australian state succession legislation. The will must be in writing, signed by the testator (or by another person in the testator's presence and at their direction), and witnessed by two independent adults present at the same time under section 6 of the Succession Act 2006 (NSW), section 7 of the Wills Act 1997 (Vic), and equivalent provisions in other Australian states. Witnesses must not be beneficiaries under the will, or gifts to them may be forfeited. Courts can admit informal wills under dispensing powers, but formal compliance is strongly preferred.
Tax Effectiveness — Minor Beneficiary Distributions
The key tax advantage of an Australian testamentary trust is that income distributed to minor beneficiaries is excluded from the penalty tax regime under Division 6AA of the Income Tax Assessment Act 1936 (Cth). Under section 102AC(2), "excepted trust income" from a testamentary trust is taxed at the beneficiary's marginal rate, not the top marginal rate. For a child with no other income, the first $18,200 of income from the trust is tax-free (using the adult tax-free threshold). This advantage is available only for income derived from assets that formed part of the deceased's estate — not for contributed capital injected after death.
Family Provision Claims
Australian state family provision legislation — including Chapter 3 of the Succession Act 2006 (NSW) and Part IV of the Administration and Probate Act 1958 (Vic) — allows "eligible persons" (spouses, children, and certain dependants) to apply to the court for further provision from an estate. The existence of a testamentary trust does not prevent family provision claims. If a court orders additional provision, the trust corpus may be reduced. Australian succession lawyers typically recommend documenting why the estate plan is fair to all potential claimants when establishing a testamentary trust will.
Superannuation and Non-Estate Assets
Superannuation does not pass under a will and cannot be directed through a testamentary trust unless it is paid to the legal personal representative (LPR) and into the estate. Under section 59 of the SISA, a binding death benefit nomination directs superannuation to nominated dependants independently of the will. For a comprehensive Australian estate plan, both the will (for estate assets) and the BDBN (for superannuation) should be reviewed together. Life insurance paid to a named beneficiary also bypasses the estate.
Frequently Asked Questions
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