Hi my mum recently passed away and left a testamentry discretionary trust to each of her kids. She also set up Comminsure life insurance bonds for each of her 4 grandkids several years ago. I was wondering if the earnings from the testamentary trust could be paid to her under 18 grandkids at the tax free rate of $18200 PA and then invested directly into their insurance bonds (allowing for 125%rule), would the grandkids need to pay any tax at all? I have a 7 and 8 year old and was wondering if this was the most tax effective way for them to build a good nest egg for when they turn 25. Thanks.