Estate Planning for Children

Paley & Prehn, PLC

Securing your children’s future is one of the most important goals of estate planning. Beyond naming guardians, many parents want to ensure that their children are provided for in a thoughtful, structured way—especially when it comes to managing inheritances responsibly.

A revocable living trust allows you to create subtrusts for children, with trustees or other trusted individuals managing the assets under the terms you set, until your children are ready to handle funds on their own. These trusts can be tailored to address education, health care, and other needs, while preventing wasteful or premature spending.

How Subtrusts Protect Children

Subtrusts set thoughtful parameters around how your children’s inheritances are managed and used:

• Education and Support – Subtrusts can specifically direct funds for tuition, educational expenses, and basic support, ensuring your child’s future is secure.

• Staged Distributions – Rather than leaving a lump sum, you may allow principal distributions in stages (e.g., at ages 25, 30, and 35) to promote responsible financial management.

• Special Needs Planning – For children with disabilities, a Special Needs Trust protects eligibility for government benefits while ensuring access to additional financial resources.

• Tailored Safeguards – Subtrusts can be customized to address unique concerns, such as limiting access to funds for children who may struggle with money management, substance abuse, or other vulnerabilities.

• Responsible Trustees – You choose the individuals or institutions who will manage your children’s inheritance, making decisions in their best interests and carrying out your instructions with care.

Guardianship of Minors

In addition to financial planning, parents must also plan for the care of their children if something happens to them. A guardian of the person provides day-to-day care, including a stable home, education, and guidance. A guardian of the estate (who is generally also named your trustee or may be another person named in a subtrust) manages financial matters. By naming guardians in your will and trustees in your trust, you ensure that your children are cared for by the people you trust most—both personally and financially—rather than leaving these critical decisions to the court. Without these designations, someone who does not have your child’s best interests at heart might be given power over your child’s future without your input.

Why It Matters

Without a trust, children could receive their entire inheritance outright at age 18—a time when few are ready to manage significant assets. And without naming guardians, the court must decide who will raise your children and manage their inheritance. Thoughtful estate planning gives you peace of mind that your children will be cared for and supported according to your wishes.

Why Clients Choose Paley & Prehn

At Paley & Prehn, PLC, we help parents design estate plans that protect their children’s future with care and precision. Contact us today to learn how subtrusts and guardianship planning can provide your children with lasting security.