Testamentary discretionary trusts are the “new black” in will drafting, with many solicitors recommending them thanks to tax benefits and protection from kids’ estranged spouses. Where there is a family trust, however, an alternative is to give the estate to that trust.

A testamentary discretionary trust is a discretionary trust set up in a will. It differs from the main type of discretionary trust that is set up by a trust deed while the beneficiaries are still alive. This latter type is called an “inter vivos trust” by lawyers and a “family trust” by everyone else.