Can a Testamentary Trust protect minor children?
Yes. The following example explains how this works. James and Erica have a combined Estate worth $1,600,000. They have two young school-going children. James and Erica wish to ensure that in the event of their deaths, their young children will be provided for, although the children are not yet ready to manage or control their inheritance. James and Erica’s Wills each create a Testamentary Trust which will only take effect on death, to ensure that their children are well provided for during their educational years, with the value of their inheritance continuing to be preserved until they reach an age when they can manage their own affairs. Their Will makes special reference to providing income for educational purposes, accommodation, maintenance, income and the like, giving the Trustee enough discretion to ensure that adequate income is made available for all these purposes. When the children reach a pre-determined age, eg 25 (the age varies from one family to another), they may be give