Connors & Sullivan attorneys at law, pllc
Tell Us About Your Estate Planning Needs:

Tips for setting up a trust for your children

Parents have many tough decisions to make when raising their kids, and one of the most difficult can be how they plan to pass along their assets. Most families do not want children under the age of 18 inheriting money or property, so choosing a qualified trustee is one of the most crucial decisions they will make.

While each family is different, there are a few guidelines that parents should consider before setting up their trust, including:

  • A trustee and a guardian may not be the same person: You may choose a close family member to be your children’s guardian if you die, however, is that person a good money manager? If not, choose someone who you believe is more qualified in financial matters.
  • Create separate shares for children in their 20s: An equitable approach considers that each child may have different needs. Creating separate shares allows each child to access those funds as needed.
  • Consider a lifetime trust: This option provides greater financial security for your child. A trustee has the discretion to distribute funds, but the child can never take huge chunks of money. This is important because once the child withdraws funds, it becomes fair game for their creditors or a divorcing spouse.
  • Protect a “problem” child: A lifetime trust is also a good option for parents who worry about a child with a substance abuse problem or gambling addiction.
  • Distribute the money in stages: For children who are responsible in handling money, consider turning over funds at different ages, for instance, release a quarter of the assets to them at age 25, age 30 and so on. You may also consider naming them as co-trustees at a certain age, so they have some say over managing the funds.
  • Plan for the worst: Although it’s difficult to think about, parents should consider what happens if their child dies while money remains in the trust. You can direct that money to go to their children or siblings.

Seek legal advice for setting up a trust

You have worked hard to build your family’s wealth and passing as much of it along as possible to your children and grandchildren can be complicated. Working with an experienced estate planning attorney here in New York can help you weigh the options to provide as much security as possible for future generations.

No Comments

Leave a comment
Comment Information
Your Trusted Guides For Every Stage Of Life And Every Step
Of The Estate Planning Process

Set Up Your Free Initial Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Connors & Sullivan attorneys at law, pllc

Visit us at one of our 5 locations.

Brooklyn Office
7408 Fifth Avenue
Brooklyn, NY 11209

Phone: 718-414-6209
Fax: 718-238-2616
Brooklyn map

Bayside Office
200-20 Northern Boulevard
Bayside, NY 11361

Phone: 718-414-6209
Bayside map

Middle Village Office
79-43 Metropolitan Avenue
Middle Village, NY 11379

Phone: 718-414-6209
middle village map

Staten Island Office
1250 Hylan Boulevard
Staten Island, NY 10305

Phone: 718-414-6209
staten island map

Manhattan Office
110 East 59th Street
New York, NY 10022

Phone: 718-414-6209
Map & Directions