Many couples with minor children choose to incorporate trust provisions in their wills instead of creating revocable “inter vivos” trusts. Most often clients choose wills with trust provisions because it is cheaper than creating a revocable trust, and in most instances, the revocable trust would be overkill. This is because most people with minor children do not have lots of property and liquid assets – in most cases, they have their retirement accounts and life insurance – both of which have beneficiary provisions that provide for the payout of the funds on the death of the owner.
As such, simply creating trusts for the minor children in the wills of the parents, and naming those trusts as the contingent beneficiary of the parents’ life insurance and retirement accounts will do exactly what is needed – to place the money in the hands of a Trustee who will manage the funds and use them for the benefit of the child – and keep the minor child from receiving a windfall at age 18.
In some instances, revocable trusts may make sense, but it is best to meet with an attorney experienced in these issues to discuss your situation specifically so that you can make an informed decision.