Every estate plan for parents with young children should contain some form of trust. In fact, we feel so strongly about this that we require our clients to put something in place. The trust will ensure that, in the event of both parents’ deaths, assets are properly managed on behalf of the children, and used only for their benefit, until the children reach a suitable age to receive the money outright. Without a trust, all assets will be held by the child’s conservator (a court-appointed financial guardian) and distributed in their entirety to the child upon turning 18.

While trusts come in many forms, for simple plans we recommend either a Testamentary Trust or a Living Trust (also called a “Revocable Trust” or an “Inter Vivos Trust”). To help you decide which trust is right for you, here are some comparisons between the two: