You probably know that it is best to plan ahead and do a will and if appropriate ensure that your will includes a testamentary trust. However if someone happens to die without a will or with a will that does not include a testamentary trust then there is provision for an estate proceeds trust to be set up following death. Such trusts must be set up within 3 years of the date of death.
The benefit in setting up such a trust is to assist with effective tax planning where there are minor children who benefit from the deceased estate. For example, in a husband and wife scenario, if the husband died without a will the wife could deposit the amount that the children are entitled to pursuant to the rules of intestacy in an estate proceeds trust which will enable her to distribute the income and capital to the children to meet their expenses. The children will be taxed at adult tax rates which means they will benefit from the tax free threshold amount.
It is important to act within the 3 year period and seek appropriate advice if this situation applies to you. Please contact Oakhill Lawyers for assistance.