A properly drafted trust is an incredibly effective tool to help protect children, even adult children after you have passed away. From what risks might they need protection? I often refer to those risks as the “challenges of life.” Common examples are the devastating financial effects of debt, bankruptcy, divorce, and addictions.
Probably the most common concern shared with me is the child who struggles with money. While we cannot usually protect an adult child from poor choices made with his own money, that does not mean the money you pass on needs be at risk of those same poor choices. It is possible to ensure your money is used to benefit your child rather than to further enable whatever struggles that child may have.
For example, if your child has many creditors, you have no obligation to use your money to pay your child’s creditors. You can have your money used any way you choose to benefit your child. This is true even after your passing. A trust is very effective to address any challenge that might jeopardize how you would like your money to be used.
If a child is in bankruptcy when you pass, your child will have no say in how his inheritance will be used. It will be taken by the Bankruptcy Trustee. However, a trust allows you to ensure that those same dollars are used the way you want, not the way the bankruptcy court orders.
What if your adult child passes prematurely, leaving grandchildren too young to provide for themselves? Or If you have concerns about your child’s share ending up with a future ex- son or daughter-in-law, a trust can solve that concern.
There are ways for your assets to be distributed as you wish, despite the challenges of life that may affect you or your children. Indeed, the solution need not be overly complex or expensive, but it will not happen automatically.
*Steve Wright is an Idaho licensed attorney. This column is provided for informational purposes only and should not be construed as legal advice, which requires a specific discussion of specific circumstances.
© 2025 Steven J Wright