Legal Tip 9: What is a Testamentary Discretionary Trust? Once you start to build up some assets each of us should seriously consider incorporating a testamentary discretionary trust in our wills. Most wills contain simple bare trusts, but testamentary discretionary trusts are the more complex trust which can run up to 80 years (or more in some instances). You may still leave certain assets directly to people with other assets left to the trustee of the trust on the terms as outlined in the will. Generally they will be 20 to 30 pages in length and there can be 1 trust or multiple trusts in the one will. The trust terms are set up when the will is done, but the trust comes into existence after the death of the testator. The testator is the settlor of the trust and the initial trust property is what the settlor transfers to the trustee. There is no CGT or stamp duty on the set up or the initial transfer of funds to the trust and property can even be transferred from the trustee to a beneficiary years later without CGT being triggered. The trust can also incorporate a sub trust to cover superannuation - a superannuation proceeds trust. It can be very important to segregate super as there are different tax consequences depending on who receives the super.Paying it to the trustee or into the pot of the residue of the will can mean it is taxed. The terms of a testamentary trust can be wide and varied - might cover that next time.