Sue is married with two (2) adult children and a grandchild on the way. Sue operates a small business as a sole trader. Sue is an only child and expects that she will soon receive a substantial inheritance from her elderly mother. Sue seeks legal advice as to what she should do to ensure her and her family receive the maximum benefit from her inheritance.
Sue should speak to her mother and ask that her inheritance be gifted via a Will creating a Discretionary Testamentary Trust. A Discretionary Testamentary Trust provides asset protection and allows the beneficiary to utilise tax minimisation strategies in respect of the income derived from the inheritance.