Trusts for Children, Part 5 – How Long To Leave The Funds in Trust

Young brother and sister arriving home with grandparents

The First Step to Establish Trusts for Children

Congratulations on taking the big step to ensure that the young ones in your life are cared for into the future considering creating a trust for children.  We are sure that establishing a trust for children will give you peace of mind and security.  Keep reading to learn more about how long you can leave the funds in trust for your children.

How Long Should I Leave the Funds in Trust?

This is a hard decision, particularly if your children are young.  You can allow your children to receive all of the money with no strings attached as young as at 18, and as long as their entire life, or anywhere in between.  There are costs and benefits to any choice you make, therefore it’s important that you talk with a lawyer about those options.

We recommend a minimum of 35 years old for the final distribution (with some partial distributions along the way as you choose).  By that age their brains should be fully developed, and the Trustee can know if there are addiction problems or other issues that need further protection.

Remember that the Trustee can distribute money for good choices while the rest of the money stays in trust.

Consider the Following When You Are Deciding How Long to Leave the Funds in Trust

  • How much money do you expect may be in the trust, and how many children will be dividing it?
  • At what age do you think your child could wisely handle that amount of money?
  • What age are your children now?
    1. If they are young, a lot of things can happen between now and then. We also don’t know their general personality.  You may want to consider leaving it indefinitely in trust if there will be a lot of money.
    2. If your kids are older, it’s easier to predict how they may be able to handle money and choose an age that you think they will be acting responsible.

Learn More About This Topic

There are far more details and possibilities of what a trust can do for you and your family.  Are you ready to get your trust for children written?  Contact us today to schedule a consultation with an attorney for confidence in your future.

There is far more to learn about trusts for children.  See the following continued series for more information:

Part 1: How Does a Trust Work?

Part 2: Distributing Trust Money

Part 3: Whom Should I Choose as Trustee?

Part 4: Leaving Instructions for the Trustee

Part 6: What if a Child is Disabled or Addicted?

Part 7: What if I Want to Change My Trust?

Want to learn more?  Check out these other resources.

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