First up, have a read of this:
http://www.mccullough.com.au/icms_docs/112170_22_AS_-_Joint_tenants_vs_tenants_in_commonpdf.pdf
Second - five trustees is probably too many for one asset.
Especially if the
corpus of the trust is simply one typical suburban house.
After discussions (and yes, legal advice), you may find that one trustee
(guided by a well drafted deed!) may well be better.
Third - the Will might have expressed the form in which the asset is to pass, so check that.
(eg:
"I leave, to those of my children alive at the time of my death, my house at 12 Smith Street Wherever, as tenants in common in equal shares")
If it didn't, or if the language and/or intention is not clear (as you sometimes get in home-brew will kits),
then the executor may need a solicitor to advise them on which form of holding is best (or preferable).
Bear in mind that the personal circumstances of individual beneficiaries can be in play in that decision.
For example:
- if one beneficiary needs to keep an eye on their asset levels because of assets tested Centrelink entitlements
(this may be relevant to your older beneficiaries here), or
- if there are family law factors in play for individual beneficiaries (eg their share becoming part of a property settlement in a divorce, or an assets-based calculation for Child Support payments)
- if a beneficiary is under a legal disability (such as bankruptcy or imprisonment), or has an intellectual or developmental disability), or
- if one or more wants "their share in money", or
- if one is estranged from the rest and cannot be found to be asked what they want.
Fourth - Seeking an accountant's advice on the tax implications for each individual beneficiary is always a good idea.
Fifth - As to doing the "family trust" thing, maybe yes, maybe no.
Family Trusts are (basically) discretionary trusts, with family members as beneficiaries.
They certainly have their uses, but are not always the universal magic bullet tax shelter that people think.
As with any trust, drafting the deed and helping the settlors is almost certainly a job for a solicitor.