No one likes to think about the unexpected, but as a parent, preparing for it is one of the most loving and responsible things you can do. If something were to happen to you, would your children be financially protected? Would your assets be managed responsibly on their behalf?
A trust can provide clear answers to those questions. While a will is an essential part of any estate plan, it may not go far enough when it comes to protecting minor children. That’s where trusts come in. With the right trust in place, you can make sure your kids are cared for and your wishes are honored—even when you’re not there to carry them out yourself.
What Is a Testamentary Trust?
A testamentary trust is a trust that’s created through your will and activated only after your death. It’s beneficial for parents of young children, allowing you to control how and when your assets are used to support them.
When you create a testamentary trust, you name a trustee to manage the assets for your children and outline specific instructions. This gives you the ability to provide for your children’s education, health care, housing, and other needs, without handing over everything in one lump sum when they turn 18.
Because testamentary trusts are built into a will, they do go through probate. However, they’re often a good fit for parents who want to ensure oversight of their children’s inheritance without creating a separate trust during their lifetime.
How a Testamentary Trust Can Protect Your Children
Children under 18 can’t legally inherit property or manage large sums of money. Without a trust, the court will appoint someone to manage those assets, often without knowing your wishes or intentions. A testamentary trust puts those decisions in your hands.
Some of the protections it offers include:
Delayed distributions: You can set specific ages or milestones for when your children receive access to funds (e.g., one-third at 25, the remainder at 30).
Ongoing support: The trustee can use trust funds to cover school tuition, medical expenses, and everyday living costs.
Oversight and control: You choose a trustee you trust to manage the assets according to your instructions.
Avoiding misuse: The trust structure helps prevent a young adult from receiving and mismanaging a large inheritance all at once.
Other Trust Options Outside of a Will
While testamentary trusts offer strong protections, they’re not the only option. Depending on your goals, you might consider one of the following trust vehicles:
Revocable Living Trust
This type of trust is created during your lifetime and can be changed or revoked at any time. It allows you to:
Avoid probate entirely, saving time and court involvement
Manage your assets while alive, then have a successor trustee take over if something happens to you
Distribute assets gradually or with conditions, much like a testamentary trust
Irrevocable Trusts
Once created, these trusts generally can’t be changed. They’re often used for:
Asset protection
Estate tax reduction
Gifting strategies
An example is a life insurance trust, which can hold a policy for the benefit of your children while keeping the proceeds out of your taxable estate.
Special Needs Trust
If you have a child with a disability, a special needs trust ensures they can receive financial support without losing eligibility for government benefits like SSI or Medi-Cal.
Trusts for Minors
A trust can be created to hold assets for a child until they reach a specific age, often used in cases involving gifts or life insurance payouts.
How to Set Up a Trust That Works for Your Family
Setting up a trust doesn’t have to be overwhelming. Here’s how to get started:
Meet with an estate planning attorney – Trusts involve critical legal decisions, so professional guidance is essential.
Choose the right type of trust – Your attorney can help you decide between a testamentary, revocable, or irrevocable trust based on your goals.
Name a trustee – This should be someone responsible, organized, and trustworthy—often a family member, close friend, or professional.
Set clear terms – Decide when and how your children can access the funds, and what expenses the trust should cover.
Fund the trust – Whether it’s life insurance, real estate, savings, or investment accounts, your trust only works if it holds assets.
Review it regularly – Life changes, and your estate plan should reflect that. Update the trust as needed to include new children, changed circumstances, or new laws.
Peace of Mind Starts With a Plan
The idea of planning for the unexpected can be difficult, but it’s also empowering. A thoughtfully prepared trust gives you the ability to protect your children and provide for them in exactly the way you would if you were still here.
At Heritage Legal, we help families across Palm Springs and the Coachella Valley create estate plans that are clear, practical, and deeply personal. Whether you’re starting from scratch or updating an existing plan, we’re here to help you protect what matters most.
Contact us today to learn more about establishing a trust that provides your children with security and gives you peace of mind.