There are 2 ways you can leave your assets to your adult children in your Estate Plan – outright or in trust. Here are 12 reasons you may want to leave your assets in trust for your adult children, rather than outright.

1. Your child is mentally or physically disabled and is eligible for (or may become eligible for) government benefits because of his disability.
2. Your child is a spendthrift and/or financially irresponsible and you don’t trust her to make good decisions about the money or assets she inherits from you.
3. Your child currently has creditors or is likely to have creditors in the future. You wish to protect the assets you leave to him from his creditors.
4. Your child is in the midst of a divorce, or likely to get divorced in future, and you want to make sure your assets aren’t diverted to the divorcing spouse.
5. Your child is a surgeon, obstetrician, engineer or other high risk professional and wants to protect assets from potential professional liability.
6. You want to be sure the assets you leave to your child pass to the next generation (i.e., your grandchildren) after your child’s death. You don’t want the assets diverted out of the family to sons-in-law, daughters-in-law, or step-children, for instance.
7. You are concerned that your child’s access to unearned money will discourage him from pursuing an education or engaging in meaningful work.
8. You are concerned that your child may be vulnerable to the bad influence of others.
9. Your child doesn’t wish to take responsibility for managing her money, and would rather rely on a Trustee who can also serve as a financial advisor.
10. You wish to select the person or company (i.e., the Trustee) who will be responsible for decisions about the assets you leave to your child, including decisions about investments and distributions.
11. Your child has substantial assets of his own and will have a large estate subject to estate taxes. You wish to ensure the assets you leave to your child aren’t subject to estate taxes on her death.
12. You want the assets you leave to your child to also be available to benefit his own children during her lifetime.