Control of your family trust does not pass through your Will. When you die, your Will has no authority over the trust or the assets inside it. Who controls your family trust after your death depends entirely on what your trust deed says about the succession of the trustee and appointor roles. For many families, this is a gap they have never thought to address.

The part most families with a family trust have never been told

A lot of families have a family trust. Usually it was set up on the advice of an accountant, for good reasons. Tax structuring. Asset protection during their working life. What most people with a family trust have never been told is what happens to it when they die.

Your Will cannot gift the trust or its assets to your children. It cannot determine who runs it after you are gone. The trust continues as its own legal structure, and who controls it depends entirely on what the trust deed says about the roles of trustee and appointor.

Why the appointor role matters so much

The appointor is the most powerful role in a family trust. They have the ability to remove and replace the trustee. In many trust deeds, that role passes in a way the family never considered. Sometimes to a surviving spouse. Sometimes to whoever is named in an outdated clause. Sometimes in a way that creates real conflict between siblings or other family members.

If you have never sat down and looked at what your trust deed actually says about succession of these roles, you may have a structure that works beautifully during your lifetime and creates significant problems the moment you are gone.

The difference between a family trust and a testamentary trust

A family trust operates during your lifetime.

A testamentary discretionary trust comes into existence through your Will and operates after your death.

They serve different purposes at different times. For families who already have a family trust, understanding how both structures interact is a critical part of estate planning that most general Wills simply do not address.

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Frequently Asked Questions

Does my family trust pass through my Will?

No. A family trust is a separate legal structure. Control of the trust passes according to the trust deed, not your Will. Your Will cannot gift the trust or the assets inside it to your children.

What is an appointor in a family trust?

The appointor has the power to remove and replace the trustee. This is the most powerful role in the trust structure. The succession of this role after your death is determined by your trust deed.

What is the difference between a family trust and a testamentary trust?

A family trust operates during your lifetime. A testamentary discretionary trust is created inside your Will and only comes into effect after your death. They serve different purposes at different times.

Do I need a testamentary trust if I already have a family trust?

In many cases, yes. A testamentary trust can protect assets that flow through your Will, including life insurance proceeds and superannuation directed to your estate in a more tax effective way. Definitely an area you should seek specific legal advice on.

This content contains general information only. It is not legal advice. Your situation may differ and this is where tailored advice matters.