Quick Glossary
We unpack some of the key terms common in Modern Estate Planning.
Glossaries
| Term | Definition |
|---|---|
| Testamentary trust | A testamentary trust is established in accordance with a client's Will document. It allows the trustee to manage assets on behalf of the trusts' beneficiaries. While testamentary trusts are a popular estate planning tool, they do come with legal and administrative· costs. |
| Tax paid investments | Investment bonds are tax paid investments, meaning that when earnings are received, the investment bond issuer pays an effective tax rate of up to 30% of the earnings. However, with careful management this tax rate can be reduced to 12-15%.9 The investment bond holder doesn't even have to include the investment bond's earnings in their tax returns. After 10 years the |
