Imagine you have a special box called a will. Inside this box, you can write down your wishes for what should happen to your things when you're no longer around. These things could be your money, toys, or even your favourite books. You can also mention who you want to take care of these things for you.
A testamentary trust is like a secret room you can create inside your special box, the will. This secret room is meant to protect and manage your things in a special way.
When you create a testamentary trust, you choose someone you trust, like a family member or a close friend, to be in charge of this secret room. We call this person the trustee. Their job is to follow the instructions you wrote in your will and take care of your things.
The trustee is like a guardian of the secret room. They make sure that everything in the secret room is kept safe and used for the right purposes, just as you want.
Now, let's say you have a little sister named Emily. You want her to have your favourite toys and books when you're not here anymore. But since she's still young, you don't want her to have everything all at once. You want her to receive your things slowly as she grows older and is ready to handle them responsibly.
That's where the testamentary trust comes in handy. You can say in your will that the trustee should give Emily some toys and books now but keep the rest safe until she's a bit older. The trustee can give her more toys and books when she reaches a certain age or achieves certain goals, like finishing school or starting a job.
The testamentary trust helps protect your things and make sure they're used wisely. It also lets you plan for the future and ensure your loved ones receive your belongings when the time is right.
So, to sum it up, a will with a testamentary trust is like a special box where you write down your wishes for what should happen to your things. The testamentary trust is like a secret room inside that box, managed by someone you trust, who makes sure your things are protected and given to the right people at the right time.
Remember, this is just a simplified explanation, and it's always important to consult with an estate planning lawyer to understand the legal aspects and create a proper will with testamentary trusts.