Key Takeaways
- Trusts can provide tax efficiency and long-term asset protection.
- Testamentary trusts let you control inheritance after death.
- Clear succession planning ensures your intentions are followed.
- Family wealth can be eroded without appropriate legal structures.
- Professional guidance helps future-proof your estate.
Building wealth is one thing. Preserving it for future generations is another.
With one of the largest intergenerational wealth transfers underway in Australia, families are increasingly seeking smart, structured ways to ensure assets don’t disappear due to tax burdens, poor decisions, or family disputes. That’s where trusts and well-considered estate planning play a vital role.
Why protecting wealth matters
Without the right legal frameworks, even modest estates can be at risk. Divorce, creditors, tax obligations, or poor financial management by beneficiaries can all chip away at what you intended to pass down.
For families in the Newcastle and Lake Macquarie region, ensuring your wealth supports your children and grandchildren as intended requires more than just a Will; it requires a strategy.
Trusts: The cornerstone of intergenerational wealth protection
A family trust (also known as a discretionary trust) is a legal structure that holds assets on behalf of beneficiaries. The key benefits include:
- Asset protection – assets are owned by the trust, not individuals, protecting them from divorce, bankruptcy, and litigation.
- Tax planning flexibility – income can be distributed among beneficiaries in a tax-effective way.
- Long-term control – the trust can operate across multiple generations if structured correctly.
Trusts are particularly useful when there are high-value assets like investment properties, family businesses, or significant savings to pass on.
Testamentary trusts: Wills with built-in protection
A testamentary trust is a trust created within your Will and comes into effect after your death. It provides a higher level of control over how and when your assets are distributed.
These are ideal when:
- You have young or vulnerable beneficiaries
- You want to delay access to inheritance (e.g. until age 25 or 30)
Unlike standard Wills, testamentary trusts can offer continued tax benefits and protection long after you’re gone.
Learn more about testamentary trusts and how they work ›
Succession planning and choosing the right people
When establishing a trust, selecting the right trustee and appointor (the person who can remove or replace a trustee) is critical.
If the wrong person holds power, your wishes might be overridden or mishandled. Clear documentation, successor appointments, and regular reviews ensure your legacy remains secure — particularly in blended families or where family dynamics are complex.
We also help with business succession planning, which is essential if a family business is part of your estate. This ensures the business can continue operating successfully after your exit or death.
Protecting your legacy against risk
Even the best plans can unravel if trusts are poorly drafted or not kept up to date. Some common pitfalls include:
- Not understanding the roles of trustees or appointors
- Failing to review structures after major life events
- Overlooking tax implications of distributions
- Leaving trusts unfunded or without clear asset transfers
This is where working with an experienced legal team makes all the difference.
How we help families across Newcastle and Lake Macquarie
At Berryman Partners, we understand the intricacies of building and protecting family wealth. Whether you’re just starting to consider a trust, need to update your estate plan, or want advice on passing on a business — our team offers legal solutions that give you and your family peace of mind.
We take the time to understand your family dynamics, financial goals, and long-term intentions to recommend structures that work now and for generations to come.
Contact us today to start the conversation.
This blog was written by Senior Associate,
Liz McIntyre
Liz practises in the areas of Family Law, Wills & Estate Planning,
Deceased Estates, Wills disputes and Conveyancing
