For someone like me who is a real dunce on this stuff, what is a testamentary trust?

Okay, so a testamentary trust is a trust that somebody writes into their will to hold... an entitlement for a beneficiary.

So instead of those funds going to the beneficiary directly into their personal name, a discretionary trust is set up for them, and that has significant advantages.

So because that beneficiary isn't the legal owner of those assets, the trust is the legal owner, that means that there's some asset protection built in.

And for many clients, that's the main reason for setting it up.

That means that if the beneficiary ever goes bankrupt, if they're a director of a company and that company goes bust and they've got creditors coming after them, if they go through a divorce, those assets that are in that trust, because they're not in their personal name, have some protection.

The other reason why people historically have set up testamentary trusts is for tax planning.

How do you manage that?