#86 What is a fixed testamentary trust?

Fixed testamentary trusts are expected to be exempt from the proposed new 30% trust tax. So naturally, some people are saying: “Easy — let’s just swap testamentary discretionary trusts for fixed testamentary trusts.” Unfortunately, it’s not that simple. In this episode, I unpack what a fixed testamentary trust actually is, why it delivers very different outcomes to a testamentary discretionary trust, and why it may be a poor substitute for many everyday Australian families. We explore the trade-offs around asset protection, flexibility, control, and protecting beneficiaries from poor decisions or outside influence — and why many families choose testamentary discretionary trusts for reasons that have nothing to do with tax. Because when it comes to estate planning, focusing on tax alone can mean missing the bigger picture entirely.