Can someone please explain the difference between a testamentary trust and a living trust? (Yes I have asked Google). We are in the process of creating our wills and have small children. We told the lawyer that if both of us were to pass we would like a testamentary trust for our children. We were advised that T Trusts are not needed for our situation. T Trusts are used for people who are incapacitated or would not use the funds wisely. (This contradicts what I have read on SS and the net). We were advised the way to go was a living trust. I questioned this and asked whether a T Trust is better due to the tax treatment of minors and I was told it was not necessary to consider Tax. The Living trust would pay all the children's expenses from its earnings and therefore there would be no tax for the children to pay. It really wasn't a very explanatory conversation - sort of this is how its done. As a non-lawyer how do I equip myself with the right knowledge to ensure my lawyer writes my will in the correct manner. We are in Victoria. Why would the lawyer have advised this?